SkyCity Adelaide to pay US$14m fine under agreement with South Australian regulator
The casino operator has agreed in principle to a US$14m penalty and a series of enhanced compliance measures following disciplinary proceedings linked to anti-money laundering, counter-terrorism financing and gambling harm minimisation failures.
Australia.- SkyCity Adelaide has agreed in principle to pay a AU$21m (US$14m) fine and implement a wide-ranging package of compliance reforms as part of efforts to resolve disciplinary proceedings brought by South Australia’s Liquor and Gambling Commissioner.
The non-binding agreement represents the latest stage of regulatory action stemming from an independent review conducted by Brian Martin AO KC, a former Supreme Court judge, as well as additional issues identified by the regulator.
Martin’s report, released in August 2025, identified shortcomings in SkyCity Adelaide’s previous management regarding anti-money laundering and counter-terrorism financing controls, gambling harm minimisation measures and corporate culture. The review found that senior management had, at times, prioritised profit over compliance obligations.
While the report concluded that both SkyCity Adelaide and its New Zealand-based parent company, SkyCity Entertainment Group (SCEG), would not have been considered suitable licence holders in 2021, it also acknowledged substantial improvements made by 2024 following changes in leadership and corporate culture.
Under the in-principle agreement, SkyCity Adelaide will be required to introduce a number of governance and compliance measures. These include appointing a majority of independent non-executive directors to its board by January 2028, ensuring its chief executive officer reports solely to the Adelaide board unless otherwise approved by the regulator, and notifying the Commissioner of significant compliance breaches within five business days.
The operator will also be required to commission independent expert reviews of workforce capability, training and corporate culture, appoint an Independent Compliance Auditor to provide annual assessments of regulatory compliance, phase out cash transactions exceeding AU$4,999 (US$3,260), and permanently maintain its existing prohibition on junket operations.
In addition, the agreement would grant the Commissioner new powers to issue legally binding directions to SkyCity Entertainment Group regarding certain operations conducted under the South Australian casino licence. Both SkyCity Adelaide and SCEG would also be subject to expanded breach notification requirements.
Humphrey described the measures as significant regulatory safeguards designed to strengthen oversight of the state’s only casino and its overseas ownership structure. “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 said.
And added: “The implementation of stringent remediation measures should also give South Australians confidence that we are taking strong steps to ensure SkyCity Adelaide continues to improve the way they do business—to better adhere to their harm minimisation, anti-money laundering and counter terrorism financing obligations.”
Discussions between the regulator, SkyCity Adelaide and SkyCity Entertainment Group are ongoing, with a final legally binding agreement expected to be completed in the coming months.
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.
