SkyCity sets aside US$46m for AML penalty

The company had increased its provision.

Australia.- SkyCity has announced it has increased its provision for a penalty related to anti-money laundering failings from AU$45m to AU$73m (US$46m) after reaching a joint decision with the Australian Transaction Reports and Analysis Centre (AUSTRAC).

AUSTRAC initiated Federal Court action against SkyCity Adelaide in December 2022, alleging systematic non-compliance with anti-money laundering and counter-terrorism financing laws. According to the regulator, the casino permitted 59 high-risk customers to gamble more than AU$4bn in suspect cash.

The Federal Court has scheduled a hearing for June 7, and SkyCity expects the matter to be concluded by the end of this financial year. SkyCity’s share price rose 6.5 per cent to AU$1.88 following the announcement. 

For the fiscal year 2023, the casino operator posted revenue of NZ$926.2m (US$551m), up 44.9 per cent year-on-year from NZ$639m (US$395m).