An intensive impartial evaluate has concluded that SkyCity Adelaide is appropriate to retain South Australia’s sole on line casino licence, regardless of a prolonged file of governance failures and compliance breaches. The 541-page report, ready by retired Supreme Court choose Brian Martin KC and launched by Liquor and Gambling Commissioner Brett Humphrey, follows a three-year course of that started in 2022.
Review Confirms Suitability with Conditions
The inquiry was launched after comparable investigations in different Australian states revealed main failings in on line casino operations. Its main purpose was to assess whether or not SkyCity Adelaide and its father or mother firm, SkyCity Entertainment Group (SCEG), had been nonetheless applicable entities to maintain and function the licence.
Mr Martin’s findings clarify that if the evaluation had been performed in October 2021, “the inevitable answer would have been that neither were suitable.” He cited decades-long failures, together with the Adelaide board not assembly or receiving stories from the time the licence was granted in 1999 till late 2021. This inaction meant the board failed to discharge duties required below licensing agreements and laws.
Between 2016 and 2022, SkyCity Adelaide’s anti-money laundering and counter-terrorism financing (AML/CTF) compliance program was discovered to be “grossly inadequate.” According to Australian Broadcasting Corporation (ABC), the evaluate additionally recognized severe shortcomings within the on line casino’s Host Responsibility Program, meant to handle playing hurt prevention. Training for employees throughout all ranges was described as “seriously inadequate.”
The inquiry was paused in February 2023 whereas AUSTRAC pursued civil proceedings in opposition to SkyCity Adelaide for AML/CTF breaches. Those proceedings concluded in June 2024, with the Federal Court imposing a AU$67 million penalty after the operator admitted to quite a few breaches of the AML/CTF Act.
According to the report, a big shift started in late 2021, significantly after the appointment of Avril Baynes as appearing chief govt in April 2024. Mr Martin famous that “the failings and inadequacies of the past were — for the first time — freely acknowledged without reservation.”
Since then, SkyCity has undertaken intensive reform measures, together with senior administration adjustments, expanded compliance assets, and the event of latest insurance policies. These initiatives type a part of the “Building a Better Business Program” (B3), created with impartial monitor Kroll Australia. The program goals to handle AML/CTF functionality, improve playing hurt minimisation measures, and rework the corporate’s company tradition. It is scheduled for completion by 30 June 2027.
Commissioner and Company Responses
Commissioner Brett Humphrey accepted Mr Martin’s evaluation that SkyCity Adelaide is at the moment an appropriate licensee and that SCEG is match to be its shut affiliate. However, he harassed that “this is by no means a clean bill of health,” citing the seriousness of the breaches uncovered and the continued want for oversight.
While many points have been resolved or are within the technique of remediation, Mr Humphrey remains to be contemplating attainable enforcement motion. He additionally indicated that further measures might be imposed to make sure the on line casino meets its obligations in future.
SkyCity CEO Jason Walbridge mentioned the corporate “fully accept[s] and acknowledge[s] the findings of the report that we did not measure up to the standards required, and we apologise for those failings.” He confirmed that AU$60 million will likely be invested over three years to enhance tradition, strengthen monetary crime controls, and bolster host duty practices.
“We further acknowledge Mr Martin’s findings and the Commissioner’s comments that we still have work to do,” Walbridge mentioned. “Our team has worked hard to raise our standards, better meet our obligations and improve how we look after our customers.”
Although the report discovered that the operator “broadly speaking” runs the on line casino competently at the moment, Mr Martin emphasised that finishing the complete reform program by mid-2027 will likely be difficult. He additionally famous that the important thing issue now’s the operator’s recognition of previous shortcomings and its demonstrated dedication to repair them.
