SkyCity Entertainment Group is now preparing for the worst, as it is facing two probes associated with its casino operation in Adelaide, South Australia. The company is reportedly setting aside a massive amount of cash because it is anticipating the possibility of facing huge monetary penalties.
The New Zealand-based gambling operator has confirmed it is still working in collaboration with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Office of the Liquor and Gambling Commissioner (OLGC) in the state of South Australia, both of which are investigating its operations. The two regulators have responded to concerns that SkyCity Entertainment’s Adelaide casino had breached anti-money laundering rules on multiple occasions.
The regulatory scrutiny very much reminds of the recent scandals involving two Australian gambling giants – Crown Resorts and its main competitor Star Entertainment – that have both faced record fines as a result of similar violations, so SkyCity is pretty much anticipating what might be coming.
On October 28th, the recently-appointed chair of SkyCity Adelaide casino, Glenn Davis, informed shareholders that the gambling operator has been preparing to face serious consequences for its violations. Both South Australia’s gambling regulator and the AUSTRAC confirmed that the company has made sure it has enough liquidity to cover potential financial penalties that it could face as a result of its Adelaide casino’s transgressions.
AUSTRAC and OLGC Both Carrying Out Investigations into SkyCity Adelaide Casino
At the time when the shareholder meeting of SkyCity Entertainment took place last Friday, one of the company’s stakeholders accused the gambling operator’s staff of being in an unfavourable position in terms of compliance with anti-money laundering rules. The investor, who remains unnamed, shared their concerns with the apathetic approach of the company toward legislation, instead of being proactive and ensuring that its operations were compliant with the rules.
The Office of the Liquor and Gambling Commissioner started an informal investigation into SkyCity Entertainment’s casino operations in July, with the probe following the inquiries into Crown Resorts and Star Entertainment, both of which had breached the anti-money laundering policies in a few Australian states, including New South Wales (NSW), Queensland, etc. The regulatory body recently confirmed that it plans to report the results of the probe in February 2023.
On the other hand, the investigation held in SkyCity Entertainment by the Australian Transaction Reports and Analysis Centre commenced in June 2021. This probe, however, has been more thorough, with the chairman of the gambling company, Julian Cook, informing shareholders that the Australian financial watchdog has come back nine times to require the provision of more documentation. Apart from that, the AUSTRAC held a review of the company’s casino in Adelaide in 2016, which, however, did not find any issues at the time, according to Mr Cook. However, further concerns were unveiled after the body took a closer look at the gambling company’s operations in 2019.
Other issues regarding serious non-compliance activity of the Adelaide-based casino that may have taken place between 2018 and 2019 also emerged, making it pretty much impossible for the operator to participate in the casino licence application process in New South Wales.
- Author
Olivia Cole
