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South Australia’s gambling regulator has reached an in-principle settlement with SkyCity Adelaide that includes an AU$21 million (US$14.8 million) fine, oversight powers over its New Zealand-based parent company and a series of compliance measures following findings of historical anti-money laundering and governance failures.
Under the non-binding heads of agreement announced Friday, SkyCity Adelaide Pty Ltd and parent company SkyCity Entertainment Group Limited (SCEG) will be subject to additional regulatory requirements arising from disciplinary proceedings linked to an independent review conducted by retired Supreme Court Judge Brian Martin AO KC and other issues identified by the regulator.
The agreement would allow Liquor and Gambling Commissioner Brett Humphrey to issue legally binding directions to SCEG regarding certain operations carried out under the South Australian casino licence. SCEG would also be required to notify regulators of specified compliance breaches.
“This agreement will also see the casino’s New Zealand-based owner, SCEG, be subject to certain regulatory obligations,” Humphrey said.
“This should send a clear message to South Australians that the failings of the past are completely unacceptable, and we are expecting them—as the owners and operators of South Australia’s only casino—to do better in future,” Humphrey added.
Compliance measures and governance changes
Alongside the proposed fine, SkyCity Adelaide has agreed to implement a package of governance and compliance measures.
These include appointing a majority of independent non-executive directors to the SkyCity Adelaide board by January 1, 2028, appointing a chief executive officer who can only take instructions from the SkyCity Adelaide board unless approved by the commissioner, and notifying the commissioner of significant breaches or likely breaches of relevant state or federal laws within five business days of becoming aware of them.
The operator will also provide independent expert reports assessing workforce capability, training and culture at its own expense, appoint an Independent Compliance Auditor to report annually on compliance obligations under its licence, phase out cash transactions above AU$4,999 (US$3,500) and permanently enforce its existing ban on junket operations.
“These are significant measures—with the cost to be borne by SkyCity Adelaide—that will help ensure ongoing compliance with all licence conditions and relevant state and federal laws,” Humphrey said.
“In particular, the ability to issue legally binding directions on SCEG regarding operations carried out under the South Australian casino licence is a significant, positive step, as it ensures appropriate oversight of the Casino’s overseas owners,” he added.
Humphrey also noted that both SkyCity Adelaide and SCEG would be required to report significant breaches of certain legislation to regulators. He said failure to meet those notification requirements could result in disciplinary action against SkyCity Adelaide.
Findings from the Martin review
The settlement stems from a suitability review that examined whether SkyCity Adelaide should continue holding the state’s sole casino licence and whether SCEG remained suitable to be a close associate of the licensee.
Martin’s report, released in August 2025, identified numerous failures by SkyCity Adelaide’s former management relating to anti-money laundering (AML) and counter-terrorism financing (CTF) obligations, gambling harm-minimization requirements and corporate culture.
The report found that senior management had, in several instances, prioritized profit over compliance and concluded that neither SkyCity Adelaide nor SCEG would have been suitable to hold a casino license or be a close associate in October 2021.
The investigation found historical failures in AML/CTF compliance, gambling harm-minimization obligations and board oversight. Martin wrote that there had been “a complete failure by the Board of the licensee to exercise its powers and functions as a Board of an incorporated entity” before November 2021.
However, Martin concluded that by April 2024, changes in senior management and corporate culture had resulted in “a change in approach to culture and a frank acknowledgment of past failings,” leading him to determine that SkyCity Adelaide was suitable to retain its casino license and that SCEG was suitable to remain a close associate.
Judge Martin also found that while the operator was progressing with remediation efforts, “full remediation by 30 June 2027 will be difficult to achieve.”
Years of scrutiny
The disciplinary proceedings followed action by the Australian Transaction Reports and Analysis Centre (AUSTRAC), which alleged that SkyCity Adelaide had engaged in “serious and systemic non-compliance” with Australia’s anti-money laundering and counter-terrorism financing laws.
According to Martin’s report, AUSTRAC’s investigation lasted more than three years. The regulator commenced Federal Court proceedings in December 2022, and SkyCity Adelaide later admitted numerous breaches of the AML/CTF Act through a Statement of Agreed Facts and Admissions filed in June 2024. The Federal Court subsequently imposed a AU$67 million (US$46.9 million) civil penalty on the operator.
Humphrey said the settlement does not erase the findings of the investigation.
“At the time that Mr. Martin’s report was released, I said that the corporate and cultural change within SkyCity Adelaide and SCEG did not equate to a clean bill of health,” he said.
“Today I can confirm I have entered into a non-binding heads of agreement to resolve this matter, which will see SkyCity Adelaide pay a $21 million fine and implement compliance measures to support the regulation of the Adelaide Casino, improve SkyCity Adelaide’s legislative compliance and ensure it remains suitable to hold the casino licence,” he added.
Formal agreement still pending
The proposed AU$21 million penalty ranks among the larger sanctions imposed on an Australian casino operator in recent years.
SkyCity Adelaide operates South Australia’s only casino. The company has also recently faced legal scrutiny over its Malta-licensed online gaming operations, with a class-action lawsuit seeking to determine the legality of gaming activities conducted through the SkyCity Online platform.
Discussions between the commissioner, SkyCity Adelaide and SCEG are continuing, with a formal legally binding agreement expected in the coming months.