SkyCity Adelaide has been deemed suitable to retain its casino licence despite significant management failures and uncertainty about completing a cultural overhaul on time, according to a recently concluded independent review. The report, led by retired Supreme Court judge Brian Martin, highlighted the company’s historical neglect of corporate responsibilities in favor of revenue generation.
The findings, submitted to Liquor and Gambling Commissioner Brett Humphrey, suggest potential enforcement actions for identified breaches. However, Martin acknowledged SkyCity’s “substantial commitment” to reform, particularly in the past year, as a positive step forward.
Background and Review Findings
The review was initiated in mid-2022 following revelations from interstate inquiries into similar casino operations, which uncovered major failings. The primary aim was to assess whether SkyCity Adelaide and its parent company, SkyCity Entertainment Group, remained suitable to hold a licence.
Initially due by early 2023, the review was delayed due to civil action by AUSTRAC against SkyCity for breaches of anti-money laundering and counter-terrorism financing laws. The inquiry resumed in June 2024 after SkyCity was fined $67 million by the Federal Court.
Judge Martin’s report, released on Tuesday, criticized SkyCity Adelaide’s board for failing to fulfill its duties from the casino’s licensing in 1999 until November 2021, noting the board did not meet or receive reports during this period. The report also highlighted serious inadequacies in compliance with financial crime laws between 2016 and 2022.
“Revenue was prioritised over compliance,” the report stated.
Additionally, the casino failed to implement a “host responsibility program,” a mandatory policy for harm minimization and prevention. The appointment of Avril Baynes as acting chief executive in April 2024 marked a turning point, with the company acknowledging past failures without reservation.
Reform Commitments and Future Outlook
SkyCity has agreed to a series of reforms, including changes in senior management, new policies, and measures to foster an appropriate culture within the casino. The work is expected to be completed by mid-2027, although Martin noted “significant issues” with the timeline.
Despite these challenges, Martin expressed confidence in the company’s current operations, stating:
“I am satisfied that, broadly speaking, today the licensee is conducting the business of the casino competently and effectively and will continue to do so in the foreseeable future.”
Commissioner Humphrey accepted the findings, affirming SkyCity’s suitability to hold the licence. However, he cautioned:
“This is by no means a clean bill of health for SkyCity Adelaide. The deficiencies and breaches uncovered are deeply concerning.”
SkyCity’s Response and Industry Implications
SkyCity’s chief executive, Jason Walbridge, acknowledged the report’s findings and apologized for the company’s past failings. He emphasized the company’s commitment to addressing the issues, including a $60 million investment over three years to enhance leadership, resourcing, and systems.
The developments at SkyCity Adelaide reflect broader challenges in the casino industry, where regulatory scrutiny has intensified following high-profile investigations into financial crimes and governance failures. The case underscores the importance of robust compliance frameworks and cultural integrity in maintaining public trust and operational licenses.
As SkyCity Adelaide works towards reform, the industry will be closely watching its progress and the potential ripple effects on regulatory practices across Australia. The outcome of this case may set a precedent for how similar issues are handled in the future, emphasizing the need for transparency and accountability in casino operations.
