SkyCity Adelaide keeps casino licence despite “significant management failures”
An independent review has found SkyCity Adelaide suitable to hold South Australia’s only casino licence.
Australia.- An independent review into the operations of the SkyCity Adelaide Casino by retired Supreme Court judge the Hon Brian Martin AO KC has found SkyCity Adelaide suitable to hold South Australia’s only casino licence. SkyCity Entertainment Group was deemed suitable to be a close associate.
Following a three-year review, the report published by South Australian Liquor and Gambling today (August 12) says SkyCity neglected its corporate responsibilities and prioritised revenue over compliance. But while Martin’s report highlighted “significant failings” on SkyCity Adelaide’s casino management, it also noted SkyCity Adelaide’s commitment to addressing those failings.
Martin wrote: “If I had been asked to determine the suitability of the licensee and SCEG (SkyCity Entertainment Group) at the end of October 2021, the inevitable answer would have been that neither were suitable. Since then, the situation has changed.”
Later in the report, Martin said: “The significance of past failures needs to be considered in the context of the licensee’s subsequent behaviour, changes in personnel and the licensee’s current corporate culture and governance. I am satisfied that, today, the licensee is a suitable person to hold the licence and operate the casino.”
Liquor and Gambling commissioner Brett Humphrey said: “This is an extremely thorough consideration of SkyCity Adelaide’s conduct prior to both Mr Martin’s investigation and the AUSTRAC civil proceedings, its attitude whilst being investigated, and the changes that have been made since the AUSTRAC proceedings concluded,” Humphrey said.
“I accept Mr Martin’s findings that SkyCity Adelaide is suitable to hold and operate the casino licence and SkyCity Entertainment Group is suitable to be SkyCity Adelaide’s close associate. But let me be clear, this is by no means a clean bill of health for SkyCity Adelaide.”
He added: “I am 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. I will also be looking at what measures may be required for the ongoing future operations of the licence.”
The review was initially commissioned in July 2022 by the former commissioner to assess the suitability of SkyCity Adelaide to hold its casino licence and to evaluate SkyCity’s status as a close associate. However, the review was put on hold in February 2023 due to civil penalty proceedings initiated by AUSTRAC against SkyCity Adelaide. However, on June 7, 2024, the Federal Court of Australia approved a AU$67m settlement agreement between SkyCity Adelaide and AUSTRAC.
