Adelaide casino operator fined $21m for 'completely unacceptable' failings

Adelaide's SkyCity casino has been fined $21 million by South Australia's gambling regulator for failing to meet its anti-money laundering and harm minimisation obligations.

The casino has also been ordered to phase out the use of cash for transactions over $4,999.

The measures are outlined in the terms of a settlement agreement announced on Friday between the Liquor and Gambling Commissioner and SkyCity Adelaide.

SA Premier Peter Malinauskas said $21 million was a "big fine for any company" and "one of the biggest in the state's history, if it's not the biggest".

The fine follows a three-year independent review of the casino's operations by retired Supreme Court judge Brian Martin.

The review, made public in August 2025, found that SkyCity Adelaide's board had for decades failed to exercise its functions and fulfil its responsibilities.

It also found SkyCity's compliance with anti-money laundering and counter-terrorism financing laws were "seriously inadequate in a number of ways" during the 2016–2022 period, with "revenue prioritised over compliance".

But Mr Martin deemed SkyCity was, by April 2024, suitable to hold its casino licence due to changes in senior management and corporate culture.

Separately, the Federal Court ordered SkyCity Adelaide to pay a $67 million fine in 2024 after a money-laundering case brought on by financial crimes agency AUSTRAC.

Allegations in that case revealed the casino had customers with links to organised crime, loan sharking, human trafficking and sex slavery.

The settlement agreement between SA's gambling regulator and SkyCity Adelaide also subjects the casino's New Zealand-based parent company, SkyCity Entertainment Group, to new regulatory obligations.

"This should send a clear message to South Australians that the failings of the past are completely unacceptable," Liquor and Gambling Commissioner Brett Humphrey said in a statement.

"We are expecting them — as the owners and operators of South Australia's only casino — to do better in future."

Junket ban and board changes

On top of the $21 million fine and cash transaction phase out, SkyCity Adelaide has also agreed to appoint an "independent compliance auditor" to report annually on its obligations.

The casino's board must be comprised of a majority of independent, non-executive directors by January 1, 2028, with a chief executive "who can only take instructions from the SkyCity Adelaide board".

The casino also must make its existing ban on "junkets" permanent.

Junkets are VIP travel programs organised to bring high-wealth players to a casino.

Another obligation imposed in the agreement is for SkyCity Adelaide to provide independent expert reports on its workforce capability, training and culture.

The casino must also notify the commissioner within five business days of becoming aware "of any significant breaches, or likely breaches" of state and federal laws.

Commissioner Humphrey said future non-compliance by SkyCity Adelaide or their parent company "will not be tolerated".

"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," Commissioner Humphrey said.

"In particular, the ability to issue legally binding directions on SCEG [SkyCity Entertainment Group] regarding operations carried out under the South Australian casino licence is a significant, positive step, as it ensures appropriate oversight of the casino's overseas owners.

"To put this into perspective: if SkyCity Adelaide or SCEG fail to notify me of a significant breach, I can take disciplinary action against SkyCity Adelaide."

SkyCity accepts findings

In a statement to the ASX on Friday morning, SkyCity Entertainment Group said the agreement was a "full and final settlement" of all matters arising from Mr Martin's review.

SkyCity chief executive Jason Walbridge said the agreement was an "important step for SkyCity".

"[It] reflects the significant work our team has done over the past four years to transform our compliance culture, strengthen our governance, and earn back the trust of our regulators," he said.

"We accept the findings that led to this outcome and take seriously the obligations we have committed to.

"The structural changes for the Adelaide Casino — including an independent Adelaide board and locally accountable leadership — reflect a genuine commitment to operating as a responsible casino operator."

Mr Malinauskas said SkyCity demonstrated, both during and after Mr Martin's review, that "they are committed not just to changing their systems but also changing their culture".

"But it is a big fine because we can't compromise on integrity and standards required of people with gambling licences in South Australia," he said.

SkyCity Adelaide reported $212.2 million in revenue for the 2024–25 financial year.

Its parent company recorded $NZ825.2 million ($676.9 million) in revenue, and a net profit after tax of $NZ29.2 million ($23.9 million).

The $21 million fine will be paid in three $7 million instalments over two years.