The gambling regulator in South Australia has reached an initial settlement agreement with SkyCity Adelaide, imposing a fine of AU$21 million (US$14.8 million) along with several compliance and oversight measures. This significant settlement, announced on Friday, follows a report released in August 2025 by retired Supreme Court judge Brian Martin AO KC, which revealed serious systemic issues in the casino operator's management and regulatory compliance.
The Australian Transaction Reports and Analysis Centre (Austrac) highlighted that SkyCity Adelaide displayed a pattern of "serious and systemic non-compliance" with anti-money laundering (AML) and counter-terrorism financing (CTF) laws. Judge Martin’s findings pointed to numerous failures by the casino’s former management in meeting their AML obligations, addressing gambling harm minimisation, and fostering a strong corporate culture.
While Judge Martin deemed SkyCity Adelaide unsuitable for holding a casino licence in October 2021, improvements made by April 2024 led to the decision to allow the casino to retain its licence. Following the report, Liquor and Gambling Commissioner Brett Humphrey indicated that he was considering the findings and evaluating potential enforcement actions regarding the breaches. He expressed the need to assess measures to ensure the casino’s ongoing compliance.
On the topic of the recent settlement, Humphrey characterized it as a significant regulatory achievement. He acknowledged that while corporate and cultural changes had occurred within SkyCity Adelaide and its parent entity, SCEG, those changes did not equate to a complete clean slate. "Today I can confirm I have entered into a non-binding heads of agreement to resolve this matter," he stated. This agreement will require SkyCity Adelaide to pay the fine and implement measures to enhance compliance and regulatory oversight.
As part of the settlement, SkyCity Adelaide has pledged to various terms, including the appointment of a majority of independent non-executive directors to its board by January 1, 2028. The casino's CEO will be required to take instructions solely from the board unless approved otherwise by the commissioner. SkyCity must also report any significant breaches of state or federal laws within five business days, commission independent reviews of its workforce, training, and corporate culture, and appoint a compliance auditor to submit annual licence compliance reports.
In a bid to strengthen its AML controls, the casino will phase out cash transactions over AU$4,999 and maintain its existing ban on junket operations. Commissioner Humphrey emphasized that SkyCity Entertainment Group Limited (SCEG), which is based in New Zealand, will also face regulatory obligations tied to its operations under the South Australian casino licence, marking a first for regulatory oversight of overseas owners.
"This should send a clear message to South Australians that the failings of the past are completely unacceptable, and we are expecting them – as the owners and operators of South Australia’s only casino – to do better in future," Humphrey said. He described the measures as both punitive and preventive, stressing the seriousness of compliance costs that must be borne by SkyCity Adelaide. He further warned that failing to report significant breaches may lead to additional disciplinary actions.
SkyCity Adelaide, which operates the only casino in the state, has come under increased scrutiny regarding its governance and anti-money laundering practices in light of the findings from the Martin review. The AU$21 million fine is noted as one of the most substantial penalties imposed in the Australian casino sector recently. Additionally, SkyCity is facing challenges related to its Malta-based online casino brand, as a class-action suit from a US-backed entity seeks to assess the legality of its gaming activities on the SkyCity Online platform, which operates under an offshore Malta licence. Negotiations to formalize the settlement into a binding agreement are currently ongoing, with final documentation anticipated in the coming months.
