SkyCity Adelaide: regulator timetabling revealed after A$4b money laundering charges

Riverside, SkyCity Adelaide where the company built a huge new hotel. Photo / Supplied

One Australian regulator is waiting for another before it decides what action it will take against SkyCity Adelaide, facing A$4 billion in money laundering charges.

Auckland-headquartered SkyCity Entertainment Group announced today the timetabling of regulator moves against its Australian operation.

First, the resolution of the Australian Transaction Reports and Analysis Centre’s (Austrac) court action against the casino and gaming giant will have to be heard.

Then, South Australian gaming regulator Consumer and Business Services will decide what to do, the company said.

Austrac is suing the casino operator for “serious noncompliance” with anti-money laundering laws and failing to monitor telltale signs of money laundering.

SkyCity bought its Adelaide casino in 2000. It is in a historic railway station. Photo / Supplied

This is Austrac’s third live civil court case against a casino group, after cases against Australia’s Crown Resorts and Star Entertainment.

SkyCity Adelaide allegedly allowed customers to spend ‘dirty money’ that appeared to have been wet and previously buried, according to documents lodged in the Federal Court of Australia in December.

Customers posing a high money laundering or terrorism financing risk engaged in big-time cash transactions, allegedly using cash in plastic bags, garbage bags, cash bundled together with rubber bands or irregular straps, dirty notes and even cash that appeared to have been buried.

In December, the company acknowledged the court action and said it could be subject to a civil penalty “which may be material”.

The regulator alleges the Adelaide casino made little effort to know its customers who were pumping millions of dollars through its systems.

SkyCity said today it had “been informed by Consumer and Business Services (the South Australian gaming regulator) that the Honourable Brian Martin AO KC’s independent review into the suitability of SkyCity Adelaide Pty Limited (SkyCity Adelaide) and SkyCity has been put on hold pending the resolution of the civil penalty proceedings filed by the Australian Transaction Reports and Analysis Centre against SkyCity Adelaide in the Federal Court of Australia on 7 December 2022.”

Last July, Consumer and Business Services said the South Australian Liquor and Gambling Commissioner had appointed Martin to do an independent review on SkyCity Adelaide holding a casino licence and the suitability of SkyCity to continue to be a close associate of SkyCity Adelaide.

Martin was due to report by February 1.

But Martin said it wasn’t possible to undertake his work until Austrac’s work was completed.

“The commissioner has advised that Mr Martin is of the view that until the resolution of the proceedings, it is not possible to determine reliably the question of suitability. On that basis, the commissioner has determined to put the independent review on hold and has extended the time for the provision of a written report of the findings of the independent review until after the conclusion of the proceedings,” today’s statement said.

“The commissioner has advised that he is considering his options regarding any action he should take while the independent review is on hold. SkyCity Adelaide continues a constructive dialogue with the commissioner. SkyCity and SkyCity Adelaide will continue to cooperate with Consumer and Business Services and any further requests for information and documents,” the company said today.

SkyCity is trading on the NZX at $2.57, down 11 per cent annually.