SkyCity Entertainment Group has been cleared to retain South Australia’s only casino licence following an independent review of its operations.
The decision follows the publication of a report by South Australia’s gambling regulator, which found that the operator has implemented adequate improvements to its anti-money laundering (AML) and counter-terrorism financing (CTF) processes to retain its licence.
The case dates back to July 2022, when the South Australian Liquor and Gambling Commissioner appointed retired Supreme Court Judge Brian Martin AO KC to undertake an independent review into the suitability of SkyCity Adelaide to continue to hold a casino licence.
This review was put on hold in February 2023 when Australia’s financial intelligence agency, AUSTRAC, commenced proceedings in the Federal Court, accusing the operator of serious and systemic non-compliance with AML and CTF financing laws.
The gambling regulator’s review recommenced in June 2024, after the operator reached a settlement with AUSTRAC.
“If I had been asked to determine the suitability of the licensee and SCEG (SkyCity Entertainment Group) at the end of October 2021, the inevitable answer would have been that neither were suitable,” Martin stated in his report.“Since then, the situation has changed.”
“The significance of past failures needs to be considered in the context of the licensee’s subsequent behaviour, changes in personnel and the licensee’s current corporate culture and governance,” Martin added. “I am satisfied that, today, the licensee is a suitable person to hold the licence and operate the casino.”
Liquor and Gambling Commissioner Brett Humphrey commended Martin for his work on the report.
“This is an extremely thorough consideration of SkyCity Adelaide’s conduct prior to both Mr Martin’s investigation and the AUSTRAC civil proceedings, its attitude whilst being investigated, and the changes that have been made since the AUSTRAC proceedings concluded,” said Humphrey. “I accept Martin’s findings that SkyCity Adelaide is suitable to hold and operate the casino licence and SkyCity Entertainment Group is suitable to be SkyCity Adelaide’s close associate.
“But let me be clear, this is by no means a clean bill of health for SkyCity Adelaide. Even though many of the issues raised have either been addressed or are being addressed through a program of work being supervised by the independent monitor since August 2023, the deficiencies and breaches uncovered are deeply concerning.
“I am considering Martin’s findings as well as ongoing work by Consumer and Business Services to determine what enforcement action I may take in light of these breaches. I will also be looking at what measures may be required for the ongoing future operations of the licence.
“In the interests of transparency, I have formed the view that Martin’s report should be made public while I continue to consider the next steps. Confidentiality provisions of the Gambling Administration Act 2019 prevented disclosure of the report previously, and it is only with SkyCity’s consent that it can now be released,” Humphrey added.
“Portions of the report still remain redacted to protect personal and commercial concerns. However, after discussions are had with relevant stakeholders, some of those redactions may be removed in the coming months.”
Shares in SkyCity Entertainment Group (NZE:SKC) closed 1.04 per cent higher at NZ$0.97 per share in Wellington Thursday.