SkyCity retains casino licence after compliance investigation
Authorities have permitted SkyCity Adelaide to retain South Australia’s sole casino licence, following a three-year investigation, but under stringent conditions. The independent review, led by Brian Martin KC, a retired Supreme Court judge, uncovered persistent compliance breaches, poor governance, and inadequate harm minimisation practices. The casino must implement significant reforms by mid-2027 to maintain its operational status.
Catalyst for the investigation
The inquiry commenced in 2022, prompted by similar investigations in other Australian states that exposed serious problems in casino operations. Authorities suspected SkyCity Adelaide might be facing similar issues. The review spanned from early 2022 to mid-2024, with a temporary pause in 2023 due to legal proceedings initiated by Australian Transaction Reports and Analysis Centre (AUSTRAC). The final 541-page report was published in August 2024 by Liquor and Gambling Commissioner Brett Humphrey.
Key findings of the review
Martin’s findings made it clear that, had the assessment taken place in October 2021, neither SkyCity Adelaide nor its parent company, SkyCity Entertainment Group (SCEG) would have been deemed suitable licensees. He pointed to long-standing failures, including the Adelaide board not meeting or receiving operational reports from 1999, when the licence was issued until late 2021. This prolonged inaction meant the board failed to meet its obligations under licencing laws.
The casino’s anti-money laundering and counter-terrorism financing programme was deemed inadequate between 2016 and 2022, raising concerns about potential illegal activity. The Host Responsibility Programme, designed to mitigate gambling-related harm, was poorly executed. Insufficient staff training further cast doubt on the level of player protection provided.
AUSTRAC proceedings and financial penalty
In February 2023, the review was suspended while AUSTRAC pursued a civil case against SkyCity Adelaide for breaches of anti-money laundering and counter-terrorism financing laws. By June 2024, the casino admitted to multiple violations and was fined AU$67 million ($43.89 million), one of the largest penalties in Australian gambling history.
Reforms initiated since 2021
The company began implementing reforms in late 2021, which accelerated in April 2024 with the appointment of Avril Baynes as acting CEO. She openly acknowledged the extent of the casino’s shortcomings. For the first time, the company publicly admitted to its governance and compliance failures.
To oversee internal improvements, SkyCity partnered with independent watchdog Kroll Australia and introduced a series of reforms, including changes in senior management, increased compliance staffing, and new internal policies. This intiative named as “Building a Better Business” (B3) programme, focuses on enhancing anti-money laundering and counter-terrorism financing procedures. The programme is scheduled for completion by June 2027 and will be closely monitored throughout.
Company’s public response
CEO Jason Walbridge acknowledged the company’s failure to meet industry standards and pledged to make necessary improvements. SkyCity plans to invest AU$60 million ($39.3 million) over three years to upgrade internal systems, customer service, and crime prevention measures.
Walbridge stated, “The company fully accepts and acknowledges the findings of the report that we did not measure up to the standards required, and we apologise for those failings. We further acknowledge Mr Martin’s findings and the Commissioner’s comments that we still have work to do. Our team has worked hard to raise our standards, better meet our obligations, and improve how we look after our customers.”
Current status and future outlook
Operational standards have improved, but the review cautioned that sustaining these reforms over time will be the true test. Regulators will continue to monitor the casino until at least 2027 to ensure the changes are upheld. Failure to do so could result in the revocation of the licence, given the gravity of past violations.
