SkyCity Entertainment Group has entered into a non-binding heads of agreement with the Commissioner for Liquor and Gambling in South Australia to resolve outstanding regulatory matters arising from the Adelaide Casino Independent Review and the Brian Martin Report.
The proposed agreement provides for a total fine of AU$21m ($14.7m), payable by SkyCity Adelaide in three instalments over two years, subject to the execution of a formal tripartite settlement deed involving SkyCity, SkyCity Adelaide and the State of South Australia.
Alongside the financial penalty, SkyCity has committed to a range of governance and operational reforms designed to strengthen regulatory oversight at Adelaide Casino.
By 1 January 2028, the Adelaide business will operate with a majority-independent local board, while a dedicated Adelaide CEO will report directly to that board.
The agreement also limits the delegation of operational responsibilities to SkyCity Entertainment Group without regulatory approval and requires annual reviews by an independent compliance auditor following completion of the operator's B3 compliance transformation programme, currently expected in June 2027.
Additional commitments include phasing out cash transactions above AU$4,999, maintaining the existing prohibition on junkets, introducing further compliance measures through a joint working group with regulators and strengthening reporting obligations for compliance breaches.
The Commissioner will also receive expanded powers to issue binding operational directions where services are provided by the wider SkyCity group.
Commenting on the agreement, SkyCity CEO Jason Walbridge, stated: “Reaching this in principle agreement is an important step for SkyCity and reflects the significant work our team has done over the past 4 years to transform our compliance culture, strengthen our governance, and earn back the trust of our regulators.
"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. We are grateful for the constructive engagement of the Commissioner's office throughout this process. ”
The parties expect to finalise a binding settlement agreement in the near future.
The settlement represents another milestone in SkyCity's wider governance programme. Earlier this year, the operator reported lower first-half earnings, citing increased investment in anti-money laundering controls and responsible gambling measures alongside broader regulatory changes.
Separately, SkyCity continues to defend proposed class action proceedings relating to its offshore online gaming operations in New Zealand, while also facing related legal scrutiny alongside other operators.
SkyCity voluntarily ceased junket operations at Adelaide Casino in April 2021, with the proposed settlement making that prohibition a permanent regulatory requirement
