Review finds SkyCity Adelaide 'suitable' to hold casino licence
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The news: SkyCity Adelaide has been found suitable to hold South Australia's only casino licence, following an independent review which flagged shortcomings in the casino operator's governance and oversight of anti-money laundering and counter-terrorism financing (AML/CFT).
The numbers: SkyCity shares were up 1.12% to 90 cents at 1:19pm AEST, having retreated 36.5% over the last 12 months.
The context: SA's liquor and gambling commissioner Brett Humphrey told SkyCity that he is considering the findings of the report, which was released today, as well as ongoing work by Consumer and Business Services (CBS) to determine what enforcement action might be taken.
The independent review, led by retired Supreme Court judge Brian Martin, also found that SkyCity Entertainment was 'suitable' to be a close associate of it subsidiary SkyCity Adelaide.
SkyCity said it will work cooperatively with the commissioner and CBS to implement the 'building a better business programme' — a multi-year project approved by the commissioner last year to improve the company's AML/CFT capability and minimise gambling related harm. The programme is expected to be completed by 30 June 2027.
Martin's independent review began in mid-2022, building on investigations already being progressed by CBS.
The review was put on hold between February 2023 and June 2024, while AUSTRAC took civil action against SkyCity Adelaide in the Federal Court of Australia for breaching national AML/CFT laws.
What they said: "We fully accept and acknowledge the findings of the report that we did not measure up to the standards required, and we apologise for those failings," said SkyCity's chief executive Jason Walbridge.
Martin commented: "If I had been asked to determine the suitability of the licensee and SCEG (SkyCity Entertainment Group) at the end of October 2021, the inevitable answer would have been that neither were suitable".
"Since then, the situation has changed."
The sources: ASX, CBS media release
