Probe into SkyCity’s suitability to hold its Adelaide casino licence back on
The independent investigation had been put on hold while the casino operator finalised its money laundering penalty with regulator Austrac.
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A state government review into SkyCity’s suitability to hold its Adelaide casino licence has restarted after the company finalised its money laundering penalty with federal regulator Austrac.
South Australia’s acting liquor and gambling commissioner Fraser Stroud has notified SkyCity Entertainment Group that the review, being conducted by prominent Adelaide KC Brian Martin, has recommenced.
The previous commissioner, Dino Soulio, last year announced an independent investigation into the suitability of SkyCity Adelaide to continue to hold the Adelaide casino licence and of SkyCity Entertainment Group to continue to be a close associate of SkyCity Adelaide.
That investigation was put on hold while Austrac finalised its investigation into SkyCity Adelaide, which was concluded on Friday with the Federal Court ratifying a $67m penalty against the casino operator for failing to meet its obligations on a number of fronts under anti-money laundering and counter terrorism financing (AML/CTF) laws.
SkyCity was also ordered to pay $3m in costs to the regulator.
SkyCity told the ASX on Wednesday that the review would restart immediately and Mr Martin was due to report back by the end of the calendar year.
“SkyCity and SkyCity Adelaide will continue to co-operate with Consumer and Business Services and the acting commissioner in relation to the independent review,’’ SkyCity said.
Parallel to the review and the Austrac proceedings, Kroll Australia has also been appointed as an independent monitor to oversee a program of work by SkyCity Adelaide to address issues raised by both Austrac and Mr Martin before his investigation was put on hold.
Austrac said last week that SkyCity’s failures included allowing “high-risk customers to move millions of dollars through the casino, in ways that made the source and ownership of the funds unclear’’.
“SkyCity also provided services through high-risk channels and to high-risk customers without appropriate risk-based controls,” Austrac said.
“It failed to carry out required checks on 121 customers, including where SkyCity knew customers were the subject of law enforcement interest, or where there were indications that some posed a higher risk of money laundering.
“The casino also failed to establish an appropriate framework to ensure adequate board and senior management oversight of its AML/CTF programs.’’
SkyCity’s Australian chief operating officer and the former head of the Adelaide casino, David Christian, resigned in April.
SkyCity on Thursday suspended dividend payouts until 2026 to ensure “headroom” to accommodate the Austrac fine and other debt arrangements as it warned of lower earnings this year and a bleak outlook for 2025.
SkyCity shares were steady on $1.44 on Wednesday.
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Originally published as Probe into SkyCity’s suitability to hold its Adelaide casino licence back on
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