SkyCity’s Adelaide casino set for independent review

SkyCity’s Adelaide casino will be scrutinised via an independent review as part of a widening crackdown on Australia’s gambling industry.

New Zealand-based SkyCity has told investors it will “fully co-operate” with a South Australian review into its Adelaide casino.

The inquiry, announced late on Friday, will be headed by retired Supreme Court judge Brian Martin and will report to Liquor and Gambling Commissioner Dini Soulio by February.

The ASX-listed gaming company’s share price fell 5.7 per cent on Monday, down 15c, to $2.50.

The review follows inquiries in other states that have uncovered significant failings on the part of the country’s largest casino operators – Crown Resorts and Star Entertainment.

In a statement issued to ASX, the company said it would “fully co-operate with the review and any request for information and documents”.

Last year, SkyCity revealed it was being investigated by financial crime watchdog AUSTRAC, which had identified “potential serious noncompliance” by the Adelaide casino with anti-money laundering and counter-terror financing rules.

Mr Soulio later said he had suspended his own review pending the outcome of the AUSTRAC investigation.

In a statement issued on Friday, Mr Soulio said inquiries undertaken in NSW, Victoria and Western Australia had highlighted “significant failings” of casino operators, and “ systemic issues within the casino industry”. “As a result, an investigation will be undertaken by the Honourable Brian Martin AO QC to ensure that the way that SkyCity operates demonstrates that the licensee is still suitable to hold the casino licence in South Australia,” he said.

In April 2021, SkyCity announced that its Adelaide Casino would cease dealing with international gambling tour operators – or “junkets” –- after an inquiry into Crown raised alarm about its links to organised crime and money laundering.

The Bergin inquiry in NSW found damning evidence of money laundering at Crown’s Perth and Melbourne operations, and ultimately found the company was not fit to run a casino at its new Barangaroo development in Sydney.

Last month Crown secured a conditional approval to open its casino at Barangaroo, with the NSW Independent Liquor and Gaming Authority saying the company had “rebuilt its gaming model from the ground up”.

Days later, US investment firm Blackstone completed its $8.9bn takeover of Crown.

The Bergin report prompted royal commissions in Victoria and Western Australia, while an independent review is also set to investigate Star Entertainment’s casinos in Queensland.

SA-BEST spokeswoman Connie Bonaros, who has previously called for a royal commission into SkyCity’s Adelaide operations, said news of the independent investigation was “deeply troubling”.

“While SA-BEST welcomes the independent inquiry, we believe nothing short of a royal commission is warranted,” Ms Bonaros said.