The enforcement comes a year after Supreme Court judge Brian Martin AO KC published a 500-page report on SkyCity’s non-compliance.
South Australia’s gambling regulator has reached an in-principle settlement agreement with SkyCity Adelaide, imposing a fine of AU$21 million (US$14.8 million) along with a package of oversight and compliance measures.
This settlement, published on Friday, followed the release of a detailed report in August 2025 by retired Supreme Court judge Brian Martin AO KC, that uncovered systemic failings in the casino operator’s management and regulatory compliance.
Years in the making
Austrac, the Australian Transaction Reports and Analysis Centre, said at the start of the proceedings that the land-based casino operator had demonstrated a pattern of “serious and systemic non-compliance” with the country’s anti-money laundering (AML) and counter terrorist financing (CTF) laws.
Judge Martin’s report identified numerous failures by SkyCity Adelaide’s former management concerning anti-money laundering (AML) and counter-terrorism financing obligations, as well as gambling harm minimisation and overall corporate culture.
Judge Martin concluded that while SkyCity Adelaide was unsuitable to hold a casino licence in October 2021, improvements implemented by April 2024 had rendered it fit to retain the licence.
Following the report, SkyCity was cleared to retain its land-based licence. Liquor and Gambling Commissioner Brett Humphrey announced at the time that he was “considering Mr Martin’s findings as well as ongoing work by Consumer and Business Services to determine what enforcement action I may take in light of these breaches.”
He added: “I will also be looking at what measures may be required for the ongoing future operations of the licence.”
All of which brings us to today, and the commissioner announcing the non-binding heads of agreement, describing the settlement as a significant regulatory milestone.
“At the time that Mr Martin’s report was released, I said that the corporate and cultural change within SkyCity Adelaide and SCEG did not equate to a clean bill of health,” Humphrey said.
“Today I can confirm I have entered into a non-binding heads of agreement to resolve this matter, which will see SkyCity Adelaide pay a $21 million fine and implement compliance measures to support the regulation of the Adelaide Casino, improve SkyCity Adelaide’s legislative compliance and ensure it remains suitable to hold the casino licence”.
Terms of the settlement
SkyCity Adelaide has committed to a series of measures under the heads of agreement, including appointing a majority of independent non-executive directors to its board by 1 January 2028 and ensuring its CEO can only take instructions from the board unless otherwise approved by the commissioner.
The operator must also notify the commissioner of any significant or potential breaches of relevant state or federal laws within five business days and commission independent expert reviews of its workforce capability, training and culture at its own expense. It must also appoint an independent compliance auditor to provide annual reports on licence compliance.
In addition, SkyCity Adelaide will phase out cash transactions exceeding AU$4,999 to strengthen anti-money laundering controls and permanently maintain its existing ban on junket operations.
‘Do better in the future’
Commissioner Humphrey also stressed that SkyCity Entertainment Group Limited (SCEG), the New Zealand-based parent company, will be subject to regulatory obligations including legally binding directions relating to its operations under the South Australian casino licence.
This oversight extends the regulator’s supervisory reach to the casino’s overseas owners for the first time.
“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,” said Humphrey.
The commissioner characterised the measures as both punitive and preventive.
“These are significant measures, with the cost to be borne by SkyCity Adelaide, that will help ensure ongoing compliance with all licence conditions and relevant state and federal laws.”
He also issued a stark warning that failure to notify the regulator of significant breaches may trigger separate disciplinary actions.
More hot water for SkyCity
SkyCity Adelaide operates the state’s sole casino. The Martin review and subsequent regulatory action had intensified scrutiny on casino governance and AML practices within Australia’s gambling sector.
The proposed AU$21 million fine represents one of the more substantial penalties in the Australian casino industry in recent times.
SkyCity has also been under fire recently for its Malta-based online casino brand. A class-action suit, filed by a US-backed group, is seeking to determine the legality of the online gaming activities conducted via the SkyCity Online platform, via its offshore Malta licence.
Negotiations to formalise the settlement into a legally binding agreement are ongoing, with final documentation expected in the coming months.
