Australia: SkyCity Adelaide retains licence following three-year review into compliance breaches

SkyCity Adelaide will retain its South Australia casino licence after a three-year independent review. The investigation found the operator had committed serious past compliance breaches, prioritised revenue over regulation, and lacked adequate harm minimisation measures, but also highlighted a "substantial commitment" to reform, particularly in the last year.

Retired Supreme Court judge Brian Martin concluded the casino and its parent, SkyCity Entertainment Group, would have been deemed unsuitable to hold a licence in late 2021, but noted the situation had since changed.

“Revenue was prioritised over compliance,” Martin said, adding that from 1999 to November 2021, the board did not meet or receive reports. He described anti-money laundering and counter-terrorism financing practices from 2016–2022 as “seriously inadequate.”

The investigation was paused during civil proceedings brought by Australia’s financial crimes watchdog, AUSTRAC, which led to a A$67 million ($44 million) fine in May 2024.

Martin said the company had begun to reform after the appointment of acting chief executive Avril Baynes in April 2024, followed by leadership changes including CEO Jason Walbridge and a commitment to invest $60 million over three years in cultural change, compliance systems, and senior management overhaul.

“Although full remediation by June 2027 appears unlikely, the significance of the change in culture and ongoing progress should not be underestimated. Further, there exist strong reasons for concluding that as remediation progresses, the licensee will successfully comply with its primary obligations under the regulatory regime,” Martin said.

South Australia Liquor and Gambling Commissioner Brett Humphrey accepted the review’s findings but warned: “I accept Mr 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.”

Walbridge said: “We fully accept and acknowledge the findings of the report that we did not measure up to the standards required, and we apologise for those failings.”

An independent monitor has overseen the casino’s remediation since August 2023, and authorities said further enforcement action remains possible.