An extensive independent review has concluded that SkyCity Adelaide is suitable to retain South Australia’s sole casino licence, despite a lengthy record of governance failures and compliance breaches. The 541-page report, prepared by retired Supreme Court judge Brian Martin KC and released by Liquor and Gambling Commissioner Brett Humphrey, follows a three-year process that began in 2022.
Review Confirms Suitability with Conditions
The inquiry was launched after similar investigations in other Australian states revealed major failings in casino operations. Its primary goal was to assess whether SkyCity Adelaide and its parent company, SkyCity Entertainment Group (SCEG), were still appropriate entities to hold and operate the licence.
Mr Martin’s findings make clear that if the assessment had been conducted in October 2021, “the inevitable answer would have been that neither were suitable.” He cited decades-long failures, including the Adelaide board not meeting or receiving reports from the time the licence was granted in 1999 until late 2021. This inaction meant the board failed to discharge duties required under licensing agreements and legislation.
Between 2016 and 2022, SkyCity Adelaide’s anti-money laundering and counter-terrorism financing (AML/CTF) compliance program was found to be “grossly inadequate.” According to Australian Broadcasting Corporation (ABC), the review also identified serious shortcomings in the casino’s Host Responsibility Program, intended to address gambling harm prevention. Training for staff across all levels was described as “seriously inadequate.”
The inquiry was paused in February 2023 while AUSTRAC pursued civil proceedings against SkyCity Adelaide for AML/CTF breaches. Those proceedings concluded in June 2024, with the Federal Court imposing a AU$67 million penalty after the operator admitted to numerous breaches of the AML/CTF Act.
According to the report, a significant shift began in late 2021, particularly after the appointment of Avril Baynes as acting chief executive in April 2024. Mr Martin noted that “the failings and inadequacies of the past were — for the first time — freely acknowledged without reservation.”
Since then, SkyCity has undertaken extensive reform measures, including senior management changes, expanded compliance resources, and the development of new policies. These initiatives form part of the “Building a Better Business Program” (B3), created with independent monitor Kroll Australia. The program aims to address AML/CTF capability, enhance gambling harm minimisation measures, and transform the company’s corporate culture. It is scheduled for completion by 30 June 2027.
Commissioner and Company Responses
Commissioner Brett Humphrey accepted Mr Martin’s assessment that SkyCity Adelaide is currently a suitable licensee and that SCEG is fit to be its close associate. However, he stressed that “this is by no means a clean bill of health,” citing the seriousness of the breaches uncovered and the ongoing need for oversight.
While many issues have been resolved or are in the process of remediation, Mr Humphrey is still considering possible enforcement action. He also indicated that additional measures could be imposed to ensure the casino meets its obligations in future.
SkyCity CEO Jason Walbridge said the company “fully accept[s] and acknowledge[s] the findings of the report that we did not measure up to the standards required, and we apologise for those failings.” He confirmed that AU$60 million will be invested over three years to improve culture, strengthen financial crime controls, and bolster host responsibility practices.
“We further acknowledge Mr Martin’s findings and the Commissioner’s comments that we still have work to do,” Walbridge said. “Our team has worked hard to raise our standards, better meet our obligations and improve how we look after our customers.”
Although the report found that the operator “broadly speaking” runs the casino competently today, Mr Martin emphasised that completing the full reform program by mid-2027 will be challenging. He also noted that the key factor now is the operator’s recognition of past shortcomings and its demonstrated commitment to fix them.
