SkyCity Retains Casino License in South Australia Following Investigation

SkyCity Receives Approval to Continue Operations
After a comprehensive independent investigation, SkyCity Entertainment has been deemed fit to retain its casino license in South Australia. This decision comes in the wake of previous concerns related to the company’s adherence to anti-money laundering regulations and its overall management standards.
Inquiry Highlights Progress and Past Shortcomings
The investigation, led by retired Supreme Court judge Brian Martin, acknowledged the significant improvements SkyCity has made since earlier identified shortcomings. Although the judge indicated that back in October 2021, neither SkyCity Entertainment Group nor its licensee would have been considered suitable, he recognized that the situation has significantly improved since then due to the company’s sincere efforts to rectify its issues.
Financial Impact on SkyCity
SkyCity has faced notable financial consequences as a result of the inquiry and associated penalties. The Adelaide Casino has contributed nearly NZD 120 million (approximately $71.4 million) in taxes and anti-money laundering penalties. Additionally, the company recorded an impairment loss of NZD 94 million (around $56 million) in its valuation last year.
Potential for Further Penalties
Financial analysts have warned that SkyCity could face additional enforcement actions leading to further fines. Paul Koraua, an analyst with Forsyth Barr, suggested a potential $32.5 million penalty might arise in the 2026 financial year. However, this may be partially offset by the $39 million improvement initiative already endorsed by regulatory authorities.
Legal Challenges Arising from the Scandal
The issues surrounding unpaid obligations have also sparked multiple lawsuits. Recently, eight former SkyCity executives faced legal action from a shareholder aiming to recover the AU$67 million ($43.56 million USD) penalty the casino operator incurred due to failures in meeting anti-money laundering requirements.
Future Plans and Commitments
Following the inquiry’s outcomes, SkyCity has committed to investing approximately A$60 million (around $39 million) over the next three years to enhance its operational systems and management practices. Chief Executive Jason Walbridge has acknowledged past mistakes, expressed acceptance of the inquiry’s findings, and apologized for not meeting expected standards. This financial commitment reflects the company’s efforts to improve regulatory compliance and restore public confidence.
Ongoing Oversight and Regulatory Concerns
Despite the favorable ruling, SkyCity Entertainment continues to be under close observation. Brett Humphrey, the South Australian Liquor and Gambling Commissioner, stressed that the report does not provide SkyCity Adelaide with an unqualified endorsement. He highlighted ongoing serious concerns regarding identified deficiencies and breaches, which remain troubling. As a result, further regulatory measures and penalties are still under consideration.