South Australia’s gambling regulator has struck an in-principle deal with SkyCity Adelaide and hit the casino owner with A$21 million (US$14.8 million) in fines and compliance and regulatory burdens.
It’s the result of a damming 500-page report delivered by a former South Australian Supreme Court judge that “documented widespread and deep-seated non-compliance” in its AML, counter-terrorism financing, harm minimization and corporate culture from November 2019 to April 2024. It comes after
Federal financial intelligence agency AUSTRAC warned in late 2021 that it had evidence of “serious and systemic non-compliance” by SkyCity Adelaide with Australia’s anti-money laundering and counter-terrorism finance laws. Brian Martin AO KC – a retired Supreme Court judge – ultimately found the casino owner unsuitable to continue to hold its license in October 2021, although it had recovered to a satisfactory standard by April 2024.
At the time of the report’s release, Liquor and Gambling Commissioner Brett Humphrey signalled that further action was coming, stating he was “considering Mr Martin’s findings as well as ongoing work by Consumer and Business Services to determine what enforcement action I may take in light of these breaches.” That action has now materialised.
Describing the settlement as a significant regulatory milestone, Humphrey confirmed:
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. 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.
Under the heads of agreement, SkyCity Adelaide has committed to a series of structural and operational changes. These include appointing a majority of independent non-executive directors to its board by January 1, 2028, and ensuring its CEO takes instructions solely from the board unless the commissioner approves otherwise. The operator must report any significant or potential breaches of state or federal law within five business days, commission independent expert reviews of its workforce capability, training, and culture at its own cost, and appoint an independent compliance auditor to deliver annual licence compliance reports.
On the financial crime prevention side, SkyCity Adelaide will phase out cash transactions above AU$4,999 and permanently uphold its existing ban on junket operations.
Notably, the settlement extends regulatory reach beyond the Adelaide casino itself. Commissioner Humphrey confirmed that SkyCity Entertainment Group Limited (SCEG), the New Zealand-based parent company, will be bound by legally enforceable directions tied to the South Australian licence — marking the first time the regulator’s oversight has stretched to the casino’s overseas ownership.
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.
He framed the package of measures as both punitive and preventive: “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 also warned that any failure to report significant breaches to the regulator could trigger separate disciplinary proceedings.
The AU$21 million penalty ranks among the more substantial fines handed down to a casino operator in Australia in recent years, and signals that regulators are prepared to hold both operators and their parent companies to account.