SkyCity Adelaide has reached a preliminary settlement with the South Australian gambling regulator, agreeing to pay a fine of AU$21 million (approximately US$14.8 million) along with implementing a series of compliance measures. Announced on Friday, this agreement comes on the heels of a comprehensive report by retired Supreme Court judge Brian Martin AO KC, released in August 2025. The report identified ongoing issues in SkyCity Adelaide’s adherence to regulatory requirements, particularly in anti-money laundering (AML) and counter-terrorism financing (CTF) measures. The settlement is significant as it addresses long-standing compliance failures and sets a framework for improved regulatory practices.
The investigation into SkyCity Adelaide was initiated by Austrac, the Australian Transaction Reports and Analysis Centre, which flagged the casino operator for “serious and systemic non-compliance” with national AML and CTF laws. Judge Martin’s analysis revealed multiple deficiencies in the operator’s management, highlighting failures in minimizing gambling harm and maintaining an appropriate corporate culture. Despite initially declaring the casino unsuitable for a licence in October 2021, improvements made by April 2024 convinced authorities that SkyCity Adelaide had regained its suitability to hold a casino licence.
Brett Humphrey, the South Australian Liquor and Gambling Commissioner, initially responded to the Martin report by stating he was evaluating potential enforcement actions in light of the identified breaches. He has since described the current settlement as a pivotal regulatory development. Humphrey remarked, “At the time of Mr. Martin’s report, SkyCity Adelaide and its parent company SCEG had not been given a clean bill of health. Today’s agreement marks a significant step in resolving these matters, with the casino agreeing to both financial penalties and enhanced compliance protocols.”
Under the terms of the agreement, SkyCity Adelaide is required to adopt a range of measures to bolster compliance. By January 2028, a majority of the board must consist of independent non-executive directors, and the CEO will be restricted to acting on instructions solely from the board, unless otherwise sanctioned by the commissioner. The casino must report any significant breaches of relevant laws within five business days and is obligated to conduct independent reviews of its workforce and compliance culture. Additionally, an independent compliance auditor will provide annual reports on adherence to licensing conditions.
To strengthen its AML controls, SkyCity Adelaide will phase out cash transactions exceeding AU$4,999 and maintain its current prohibition on junket operations. These requirements not only aim to rectify past compliance issues but also serve as preventive measures to avoid future regulatory breaches.
Commissioner Humphrey emphasized the broader implications for SkyCity Entertainment Group Limited (SCEG), the casino’s New Zealand-based parent company, which will now face direct regulatory oversight under the South Australian licence for the first time. This extension of oversight is intended to ensure that the ownership and operational complexities do not impede regulatory compliance. Humphrey stated, “This sends a clear message that past failings will not be tolerated, and we expect the owners and operators of the state’s sole casino to improve their practices moving forward.”
This settlement comes at a sensitive time for SkyCity, which is also confronting legal challenges over its Malta-based online platform. A class-action lawsuit filed by a US-backed group questions the legality of SkyCity’s online gaming activities conducted through its Malta licence, adding further regulatory scrutiny to the company’s operations.
The AU$21 million fine is among the largest penalties levied in Australia’s casino sector, reflecting the severity of the identified compliance breaches. The formalization of this settlement into a legally binding agreement is ongoing, with the final documentation process expected to conclude in the upcoming months. Commissioner Humphrey has cautioned that failure to adhere to reporting obligations could result in separate disciplinary actions, reinforcing the importance of compliance in safeguarding the casino’s operational future.
As SkyCity Adelaide works towards fulfilling these regulatory commitments, the focus will remain on ensuring that the necessary compliance structures are not only implemented but are effective in maintaining regulatory standards across all facets of its operations.
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