• SkyCity Entertainment Group has been found suitable to retain its casino licence in Adelaide, South Australia, following a lengthy investigation into past anti-money laundering ( AML) failings.
• The independent report by retired Justice Brian Martin found the operator was previously “unsuitable” but has made significant improvements, particularly since the appointment of CEO Jason Walbridge in 2024.
• This decision comes after SkyCity paid a separate A$67 million penalty to financial crime agency AUSTRAC in May 2024 for “serious and systemic non-compliance.”
• The South Australian regulator warned the decision is “by no means a clean bill of health” and is considering further enforcement action for the historical breaches.
• While deemed suitable, the report expressed doubt that SkyCity’s full remediation program could realistically be completed by its June 2027 target.

SkyCity Entertainment Group has secured its future in South Australia after a long-awaited independent review concluded that the company is now suitable to hold the casino licence for its Adelaide property. However, the report was damning in its assessment of the operator’s past conduct.

The review, led by retired Supreme Court Justice Brian Martin, made the stark admission that had the company’s suitability been judged in late 2021, the “inevitable answer would have been that neither were suitable.” He concluded, however, that the situation has now changed. “I am satisfied that, today, the licensee is a suitable person to hold the licence and operate the casino,” Martin wrote, citing significant changes in personnel, corporate culture, and governance.

The High Cost of ‘Systemic Non-Compliance’

The investigation was initiated after Australia’s financial crime watchdog, AUSTRAC, launched federal court proceedings against SkyCity Adelaide in December 2022. AUSTRAC detailed a pattern of “serious and systemic non-compliance” with anti-money laundering ( AML) and counter-terrorism financing ( CTF) laws.

The failings included a lack of proper board oversight, inadequate risk-based controls, and the failure to conduct appropriate enhanced customer due diligence ( EDD) on high-risk customers. The AUSTRAC case was settled in May 2024, with SkyCity agreeing to pay a substantial A$67 million penalty for these historical breaches.

New Leadership Seen as Turning Point

The Martin report pinpointed a “poor and inadequate culture” in the past but noted that a genuine shift did not fully take hold until the arrival of new leadership. The appointment of Jason Walbridge as CEO in April 2024 was highlighted as a key turning point in the company’s remediation efforts.

“The significance of past failures needs to be considered in the context of the licensee’s subsequent behaviour, changes in personnel and the licensee’s current corporate culture and governance,” the report stated.

‘Not a Clean Bill of Health’: Regulator Warns of Further Action

Despite finding SkyCity suitable to retain its licence, South Australia’s Liquor and Gambling Commissioner, Brett Humphrey, issued a stern warning. “Let me be clear, this is by no means a clean bill of health for SkyCity Adelaide,” he stated. “The deficiencies and breaches uncovered are deeply concerning.”

Humphrey confirmed that he is now considering the report’s findings to “determine what enforcement action I may take in light of these breaches” and what future measures may be required for the ongoing operation of the licence.

The Road Ahead: Remediation and an Uncertain Timeline

SkyCity is currently in the midst of a major remediation program, which has been supervised by an independent monitor since August 2023. However, the report cast doubt on whether the company’s self-imposed deadline for completion is achievable. “Notwithstanding good intentions… full remediation by June 2027 will be difficult to achieve,” Martin wrote.

Responding to the findings, CEO Jason Walbridge accepted the past failings and reiterated the company’s commitment to improvement. “We fully accept and acknowledge the findings of the report that we did not measure up to the standards required, and we apologise for those failings,” he said. “We further acknowledge that we still have work to do.”