SkyCity Adelaide has agreed to pay a $21 million fine to the South Australian gambling regulator. The penalty, which Premier Peter Malinauskas suggests may be one of the largest financial sanctions in the state’s history, follows a series of severe breaches regarding anti-money laundering (AML) obligations and harm minimisation standards.
The settlement, reached between the Liquor and Gambling Commissioner and SkyCity Adelaide, aims to resolve outstanding regulatory matters stemming from a comprehensive independent review. This agreement signals a strict crackdown on corporate negligence within the gaming industry, ensuring that the state’s only casino adheres to the highest standards of integrity and legal compliance.
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The Brian Martin Review and Systematic Compliance Failures
The financial penalty is the direct result of a three-year independent investigation conducted by retired Supreme Court judge Brian Martin. The findings of the Brian Martin report, which became public in August 2025, painted a damning picture of the casino’s internal operations between 2016 and 2022. The review concluded that the SkyCity Adelaide board had failed for decades to properly exercise its functions or fulfill its corporate responsibilities.
- Crucially, the report revealed a corporate culture where “revenue was prioritised over compliance.”
- The judge found that the casino’s efforts to combat money laundering and counter-terrorism financing were “seriously inadequate.” These gaps in oversight had dangerous real-world implications.
- Previous Federal Court documents linked SkyCity Adelaide customers to organized crime, sex slavery, human trafficking, and loan sharking.
In a separate 2024 case brought by the financial crimes agency AUSTRAC, the casino was ordered to pay a further $67 million fine for similar money-laundering lapses.
Strict New Regulatory Obligations for SkyCity Entertainment Group
The $21 million fine is only one component of a sweeping settlement designed to transform how the casino operates. To prevent future breaches, the Liquor and Gambling Commissioner, Brett Humphrey, has imposed several stringent conditions that extend to the New Zealand-based parent company, SkyCity Entertainment Group.
- Cash Transaction Limits: SkyCity Adelaide must phase out the use of cash for any transactions exceeding $4,999 to mitigate money laundering risks.
- Permanent Junket Ban: While the casino ceased “junket” operations—VIP travel programs designed to attract high-wealth international players—in April 2021, this ban must now be made permanent.
- Independent Auditing: The casino is required to appoint an independent compliance auditor who will provide annual reports on the company’s adherence to its legal obligations.
- Workforce Transparency: The company must provide independent expert reports regarding its workforce capability, training standards, and corporate culture.
Furthermore, the casino must notify the commissioner within five business days of becoming aware of any significant breaches, or potential breaches, of state and federal laws. Commissioner Humphrey has warned that any future non-compliance from either the local entity or the parent company “will not be tolerated.”
Overhauling Corporate Governance and Leadership
A central pillar of the agreement is the complete restructuring of the casino’s leadership to ensure local accountability. By January 1, 2028, the SkyCity Adelaide board must consist of a majority of independent, non-executive directors. This move is designed to decouple the local operation from the undue influence of the overseas parent company.
Additionally, the casino must appoint a dedicated local Chief Executive who will report directly to the SkyCity Adelaide board and cannot take instructions from the parent entity without the Commissioner’s approval. This structural shift aims to ensure that decisions are made based on South Australian regulatory requirements rather than global corporate interests.
SkyCity CEO Jason Walbridge described the agreement as an “important step” and a “full and final settlement” of the matters arising from the Martin review. Walbridge emphasized that the company has spent four years working to transform its compliance culture and earn back the trust of regulators.
Financial Impact and Payment Structure
Despite the significant nature of the fine, the financial impact is balanced against the casino’s substantial earnings. SkyCity Adelaide reported a revenue of $212.2 million for the 2024–25 financial year. Its parent company, SkyCity Entertainment Group, recorded revenue of $NZ825.2 million (approximately $676.9 million) with a net profit after tax of $NZ29.2 million.
To facilitate the payment, the $21 million penalty will be paid in three equal instalments of $7 million over a two-year period. The first payment is due within 28 days of the formal binding deed, with subsequent payments following at the one-year and two-year marks.
A Message of Zero Tolerance for Gambling Misconduct
Premier Peter Malinauskas reiterated that while he acknowledges the changes in management and culture, the severity of the fine is necessary to maintain public confidence. “We can’t compromise on integrity and standards required of people with gambling licences in South Australia,” Malinauskas stated.
The settlement serves as a warning to the broader gaming and hospitality sector. By holding the New Zealand-based parent company accountable for the actions of its Australian subsidiary, the South Australian government has established a precedent that overseas ownership does not exempt a company from local legal and ethical obligations.
Frequently Asked Questions
Why was SkyCity Adelaide fined $21 million?
The fine was imposed due to failures in meeting anti-money laundering (AML) and harm minimisation obligations, as well as governance failures where revenue was prioritized over legal compliance.
What was the Brian Martin Review?
The Brian Martin Review was a three-year independent investigation by a retired Supreme Court judge that uncovered systemic failures in the SkyCity Adelaide board’s responsibilities and inadequate AML/CTF compliance between 2016 and 2022.
What are ‘junkets’ and why are they banned?
Junkets are VIP travel programs used to bring high-wealth players into casinos. They are often viewed as high-risk for money laundering, leading the regulator to mandate a permanent ban at the Adelaide casino.
How will the fine be paid?
The $21 million penalty will be paid in three instalments of $7 million each over a period of two years.
What structural changes are being made to the casino’s leadership?
By January 2028, the board must be composed of a majority of independent, non-executive directors, and a local CEO must be appointed who is accountable specifically to the Adelaide board.
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