An intensive impartial evaluation has concluded that SkyCity Adelaide is appropriate to retain South Australia’s sole on line casino licence, regardless of a prolonged report of governance failures and compliance breaches. The 541-page report, ready by retired Supreme Court docket decide Brian Martin KC and launched by Liquor and Playing Commissioner Brett Humphrey, follows a three-year course of that started in 2022.
Evaluation Confirms Suitability with Circumstances
The inquiry was launched after related investigations in different Australian states revealed main failings in on line casino operations. Its major purpose was to evaluate whether or not SkyCity Adelaide and its father or mother firm, SkyCity Leisure Group (SCEG), have been nonetheless acceptable entities to carry and function the licence.
Mr Martin’s findings clarify that if the evaluation had been carried out in October 2021, “the inevitable reply would have been that neither have been appropriate.” He cited decades-long failures, together with the Adelaide board not assembly or receiving stories from the time the licence was granted in 1999 till late 2021. This inaction meant the board did not discharge duties required below licensing agreements and laws.
Between 2016 and 2022, SkyCity Adelaide’s anti-money laundering and counter-terrorism financing (AML/CTF) compliance program was discovered to be “grossly insufficient.” Based on Australian Broadcasting Company (ABC), the evaluation additionally recognized severe shortcomings within the on line casino’s Host Duty Program, supposed to deal with playing hurt prevention. Coaching for employees throughout all ranges was described as “severely insufficient.”
The inquiry was paused in February 2023 whereas AUSTRAC pursued civil proceedings towards SkyCity Adelaide for AML/CTF breaches. These proceedings concluded in June 2024, with the Federal Court docket imposing a AU$67 million penalty after the operator admitted to quite a few breaches of the AML/CTF Act.
Based on the report, a major shift started in late 2021, significantly after the appointment of Avril Baynes as performing chief government in April 2024. Mr Martin famous that “the failings and inadequacies of the previous have been — for the primary time — freely acknowledged with out reservation.”
Since then, SkyCity has undertaken in depth reform measures, together with senior administration adjustments, expanded compliance sources, and the event of latest insurance policies. These initiatives kind a part of the “Constructing a Higher Enterprise Program” (B3), created with impartial monitor Kroll Australia. This system goals to deal with AML/CTF functionality, improve playing hurt minimisation measures, and rework the corporate’s company tradition. It’s scheduled for completion by 30 June 2027.
Commissioner and Firm Responses
Commissioner Brett Humphrey accepted Mr Martin’s evaluation that SkyCity Adelaide is at present an acceptable licensee and that SCEG is match to be its shut affiliate. Nonetheless, he confused that “that is on no account a clear invoice of well being,” citing the seriousness of the breaches uncovered and the continued want for oversight.
Whereas many points have been resolved or are within the technique of remediation, Mr Humphrey remains to be contemplating potential enforcement motion. He additionally indicated that further measures may very well be imposed to make sure the on line casino meets its obligations in future.
SkyCity CEO Jason Walbridge mentioned the corporate “absolutely settle for[s] and acknowledge[s] the findings of the report that we didn’t measure as much as the requirements required, and we apologise for these failings.” He confirmed that AU$60 million will probably be invested over three years to enhance tradition, strengthen monetary crime controls, and bolster host duty practices.
“We additional acknowledge Mr Martin’s findings and the Commissioner’s feedback that we nonetheless have work to do,” Walbridge mentioned. “Our group has labored laborious to boost our requirements, higher meet our obligations and enhance how we glance after our prospects.”
Though the report discovered that the operator “broadly talking” runs the on line casino competently in the present day, Mr Martin emphasised that finishing the total reform program by mid-2027 will probably be difficult. He additionally famous that the important thing issue now could be the operator’s recognition of previous shortcomings and its demonstrated dedication to repair them.
