An Independent Review into the suitability of SkyCity Adelaide Pty Limited has found the company suitable to continue to hold its casino licence and parent company SkyCity Entertainment Group suitable to continue to be a close associate.
The review, by retired Supreme Court Judge Brian Martin AO KC, was first launched in mid-2022 before being put on hold between February 2023 and June 2024 while Australia’s AML watchdog AUSTRAC took civil action against SkyCity Adelaide in the Federal Court of Australia for breaching the national Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
AUSTRAC and SkyCity ultimately reached an agreement for SkyCity to pay an AU$67 million (US$44 million) penalty plus AU$3 million (US$2 million) in costs.
In a report released by South Australia’s Liquor and Gambling Commissioner on Tuesday, Martin found the Adelaide casino operator suitable despite highlighting significant failings of SkyCity Adelaide’s casino management. Martin also noted SkyCity Adelaide’s substantial commitment to addressing those failings.
“If I had been asked to determine the suitability of the licensee and SkyCity Entertainment Group at the end of October 2021, the inevitable answer would have been that neither were suitable,” he wrote. “Since then, the situation has changed.
“The significance of past failures needs to be considered in the context of the licensee’s subsequent behavior, changes in personnel and the licensee’s current corporate culture and governance.
“I am satisfied that, today, the licensee is a suitable person to hold the license and operate the casino.”
In a filing, SkyCity said it accepted that the report identifies shortcomings, including in governance, AML/CFT and host responsibility and would work cooperatively with the Commissioner and Consumer and Business Services (CBS) to implement its “Building a Better Business Programme (B3). The program, expected to be complete by 30 June 2027, will focus on the company’s AML/CFT capability, gambling related harm minimization and cultural transformation.
“We fully accept and acknowledge the findings of the Report that we did not measure up to the standards required, and we apologize for those failingsm” said SkyCity CEO Jason Walbridge.
“We further acknowledge Mr Martin’s findings and the Commissioner’s comments that we still have work to do. We remain committed to our B3 program and constructive engagement with all our regulators.
“We have made significant enhancements in terms of leadership, resourcing and systems, including a commitment to invest ~$60 million over three years to transform our culture, to uplift our financial crime and host responsibility practices. Our team has worked hard to raise our standards, better meet our obligations and improve how we look after our customers”.
South Australia’s Liquor and Gambling Commissioner will, the agency said, consider the findings of the report and the ongoing work by Consumer and Business Services to determine what enforcement action may be taken.
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