SkyCity Entertainment Group has finally settled its regulatory issues in relation to its Adelaide Casino with the Australian regulator, the Commissioner for Liquor and Gambling in South Australia.
The Adelaide Independent Review has reached a resolution to address matters from the Brian Martin report, SkyCity announced, resulting in the operator, SkyCity Adelaide and the State of South Australia entering a non-binding heads of agreement for a total fine of AUS$21m (approximately €13m) to be paid in three equal instalments.
SkyCity Adelaide has also agreed to enhanced governance, compliance and operational commitments. A binding tripartite settlement deed between the parties covering the heads of agreement is expected to be finalised shortly.
Jason Walbridge, Chief Executive Officer of SkyCity, stated: “Reaching this in-principle agreement is an important step for SkyCity and reflects the significant work our team has done over the past four years 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. The structural changes for the Adelaide Casino — including an independent Adelaide board and locally accountable leadership — reflect a genuine commitment to operating as a responsible casino operator.
“We are grateful for the constructive engagement of the Commissioner’s office throughout this process.”
SkyCity Adelaide was deemed suitable to hold a casino licence in South Australia by an independent review in August last year.
SkyCity Adelaide key terms
As previously mentioned, the total fine of AUS$21m will be split as follows:
- AUS$7m within 28 days of tripartite settlement deed.
- AUS$7m within one year of first instalment.
- AUS$7m within two years of first instalment.
By 1 January 2028, SkyCity Adelaide must:
- Have a board comprised of a majority of non-executive directors who (including the chair) are independent of SCEG and related entities.
- Prohibit delegating functions and responsibilities to SCEG without the Commissioner’s approval.
- Appoint a SkyCity Adelaide CEO who reports to the SkyCity Adelaide Board (with a dotted line to the SkyCity CEO), and with all general managers reporting to that SkyCity Adelaide CEO (unless approved by the Commissioner otherwise).
“We accept the findings that led to this outcome and take seriously the obligations we have committed to.”
Jason Walbridge, Chief Executive Officer of SkyCity
In addition, the terms include:
- Appointing an independent compliance auditor to report annually on compliance under the regulatory regime (to apply 12 months after completion of SkyCity Adelaide’s ‘B3 Program’, its three-year compliance transformation expected to be completed by June 2027).
- SkyCity Adelaide to phase out the use of cash for transactions over A$4,999
- A prohibition on junkets at the Adelaide Casino (SkyCity ceased in April 2021).
- A number of compliance measures are to be agreed by 1 January 2028 by a working group comprising representatives of SkyCity Adelaide and CBS.
- The Commissioner be conferred powers to issue legally binding directions to SkyCity regarding operations carried on under the South Australian Casino licence that depend on SkyCity’s provision of services, personnel, licences, systems or similar matters (with commercially reasonable steps to locate such matters in Adelaide).
- An obligation on SkyCity Adelaide and SkyCity to notify certain compliance breaches to CBS.
Last month, SkyCity noted that operations in Adelaide had felt the impact of a drop in visitor numbers, with macroeconomic conditions that have been in play since March raising its concern level for FY26.
Based on trading conditions experienced since fuel prices increased remaining broadly consistent for the remainder of the financial year, SkyCity expects its FY26 guidance to be $180m-$190m for underlying EBITDA (previously $190m-$210m) and $155m-$165m for reported EBITDA (previously $170.6m-$190.6m).
