SkyCity Agrees A$21m Settlement Over Adelaide Casino Compliance Failures

SkyCity Entertainment Group has reached an in-principle settlement with South Australia’s Commissioner for Liquor and Gambling over compliance failures at its Adelaide casino.

Under the agreement dated 19 June, SkyCity will pay A$21m in three equal instalments. The first A$7m payment is due within 28 days, while the other instalments must be paid within one year and two years respectively.

This fine is part of a wider settlement to resolve regulatory issues identified during an independent review led by retired Supreme Court judge Brian Martin, which was published in August last year. 

Despite identifying serious past failures, the report concluded that SkyCity Adelaide is suitable to retain its casino licence.

Independent Review Found Governance Weaknesses

Martin’s 514-page report found that SkyCity Adelaide had operated with “a poor and inadequate culture” until late 2021.

The review criticised the company’s board for failing to properly exercise its governance responsibilities. It found that senior management initially resisted meaningful reform after compliance problems became public in 2021.

However, Martin noted that SkyCity had made positive progress across major areas since mid-2024. He also warned that completing the company’s remediation programme by 30 June 2027 would be difficult due to the scale and complexity of the work required.

The settlement appears to address that concern by giving SkyCity more time to complete several structural reforms.

Settlement Requires Independent Oversight And Local Leadership

Once SkyCity completes its compliance transformation programme, expected by June 2027, the Adelaide casino must appoint an independent compliance auditor. The auditor will be required to produce annual reports assessing whether the casino is meeting its regulatory obligations.

A list of governance reforms must also be completed by 1 January 2028. By the deadline, SkyCity Adelaide’s board must have a majority of independent non-executive directors, including an independent chair.

The casino will be restricted from delegating certain responsibilities to its parent company without regulatory approval. Other requirements include appointing a dedicated Adelaide casino CEO who reports directly to the local board. Most senior managers at the property will report to that executive.

SkyCity must also phase out cash transactions above A$4,999 and formalise its existing ban on junket operations. The regulator will receive stronger powers to issue binding directions to SkyCity on matters connected to the casino licence.

Company Looks To Rebuild Regulatory Trust in Australia

The settlement could bring a long open regulatory process closer to conclusion. Martin began his review in June 2022, but the process was paused for 18 months due to AUSTRAC’s federal Court proceedings against SkyCity.

In June 2024, SkyCity admitted multiple breaches of Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and received a A$67m civil penalty. SkyCity CEO Jason Walbridge described the latest settlement as an “important step” in the company’s reform journey.

“We accept the findings that led to this outcome and take seriously the obligations we have committed to,” he said. “The structural changes for the Adelaide Casino – including an independent Adelaide board and locally accountable leadership – reflect a genuine commitment to operating as a responsible casino operator.

“We are grateful for the constructive engagement of the Commissioner’s office throughout this process.”

Due to compliance failures with its Adelaide Casino, SkyCity has been fined $21m to be paid in three instalments. The regulatory issues were discovered after an independent review by retired Supreme Court Brain Martin. South Australia’s Commissioner for Liquor and Gambling also mandates the company to complete a list of reforms by 1 Jan, 2028.