SkyCity Entertainment Group has agreed to pay A$21m to resolve regulatory issues stemming from compliance failings at its Adelaide casino operation.
The settlement was reached as an in-principle agreement with the Commissioner for Liquor and Gambling in South Australia, announced on 19 June 2026.
The fine will be paid across three equal instalments of A$7m, with the first payment due within 28 days of the agreement being formalised.
Further instalments are scheduled at one and two years following the initial payment, giving SkyCity a structured path to clearing the financial penalty.
The fine forms part of a broader settlement designed to resolve regulatory concerns identified during an independent review of SkyCity’s Adelaide casino operations published in August last year.
That review, led by retired Supreme Court judge Brian Martin, concluded SkyCity Adelaide remained suitable to retain its casino licence despite a troubling history of compliance failures.
Martin’s 514-page report identified “a poor and inadequate culture” at SkyCity until late 2021, noting the board failed to exercise basic governance powers during that period.
Senior management also initially resisted meaningful reforms even after the compliance failings became public knowledge in 2021, according to the findings of that review.
While Martin reported positive progress across all areas since mid-2024, he warned that SkyCity’s target of completing its remediation programme by 30 June 2027 would be difficult given the complexity involved.
The settlement agreement appears to address those concerns directly, with certain key terms carrying extended deadlines to allow SkyCity more time to implement the required changes.
Once its compliance transformation programme is completed, which is expected by June 2027, SkyCity Adelaide must appoint an independent compliance auditor to provide annual reports on its regulatory obligations.
A broader package of governance reforms is due by 1 January 2028, by which point the Adelaide casino’s board must comprise a majority of independent non-executive directors, including an independent chair.
SkyCity Adelaide will also be prohibited from delegating certain functions to its parent company without regulatory approval, while an Adelaide casino CEO must report directly to the local board.
The operator will phase out cash transactions above A$4,999 and formalise its existing prohibition on junket operations as further conditions of the settlement.
The regulator will also gain stronger powers to issue binding directions to SkyCity on matters relating to the casino licence, with additional compliance measures to be agreed before the 2028 deadline.
This resolution follows a lengthy regulatory process that began when Martin started his review in June 2022, only for proceedings to be paused for 18 months while AUSTRAC pursued Federal Court action against the operator.
Those AUSTRAC proceedings concluded in June 2024, with SkyCity admitting numerous breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and receiving a A$67m civil penalty.
SkyCity CEO Jason Walbridge described the in-principle settlement as an “important step” for the company, reflecting its efforts 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,” Walbridge said, adding that structural changes reflect a genuine commitment to responsible operation.
Walbridge also noted the company was “grateful for the constructive engagement of the Commissioner’s office throughout this process,” signalling a more cooperative relationship with South Australian regulators going forward.
