SkyCity’s Australian chief David Christian has resigned

SkyCity’s Australian boss David Christian has resigned – the second executive to bow out in as many weeks – as the company awaits major money laundering penalties.

Outgoing SkyCity chief operating officer Australia David Christian.

SkyCity’s Australian chief operating officer and the head of the Adelaide Casino David Christian has resigned, two months ahead of a scheduled court date for major penalties to be levied against the company in relation to breaches of anti-money laundering laws.

Mr Christian is the second c-suite executive to announce their resignation in as many weeks, with the company announcing in late March that chief financial officer Julie Amey would step down in September, after joining the company in May 2021.

Former SkyCity chief executive Michael Ahearne announced his resignation in October last year after less than three years in the top job, with the company still operating with an interim chief executive in Callum Mallett,

Mr Christian, who has been with SkyCity since 2005, will step down on April 12, and will be replaced on an interim basis by current general manager of hospitality at SkyCity Adelaide, Avril Baynes.

SkyCity is facing headwinds on a number of regulatory fronts, and on June 7 is scheduled to learn the civil penalty it faces for, in its own words, “serious breaches” of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.

In 2022 the financial crimes regulator AUSTRAC lodged a statement of claim with the Federal Court alleging more than $4bn was gambled through SkyCity’s Adelaide casino by 59 suspicious customers over six years, including individuals casino staff knew were facing money laundering and drug trafficking charges.

SkyCity in February said it had come to an agreement with AUSTRAC over the contraventions it would admit to in the proceedings, and the size of the civil penalty they would jointly propose to the court.

“As previously identified, a resolution of the matter will involve SkyCity Adelaide admitting serious breaches of the AML/CTF Act and the imposition by the court of a material civil penalty,’’ SkyCity said in February.

To date, SkyCity has made a provision on its books for at least a $73m penalty, but has said the final amount could be “significantly different’’ to the provision.

Last Year SA’s Liquor and Gambling Commissioner also announced a review of the suitability of SkyCity to hold the state’s only casino licence, however that has been put on hold awaiting the outcome of the AUSTRAC matter.

SkyCity also said in February it would have to pay the SA state government as much as $33m after the Supreme Court ruled against it in relation to the taxation of its loyalty program.

SkyCity is also facing a civil penalty claim in New Zealand’s High Court, related to breaches of that country’s money laundering laws.

Mr Christian was contacted for comment.