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Tag: skycity

  • SkyCity Adelaide to Pay $67 Million Money Laundering Fine

    SkyCity Adelaide to Pay $67 Million Money Laundering Fine

    A landmark ruling by the Federal Court of Australia ordered SkyCity Adelaide to pay an AU$67 million ($44.1 million) fine for substantial breaches of anti-money laundering (AML) and counter-terrorism financing (CTF) laws, which occurred at its North Terrace casino. The venue reportedly failed to comply with legislative requirements and lacked crucial customer due diligence safeguards.

    SkyCity Faces Substantial Challenges

    AUSTRAC, the country’s federal financial crimes regulator, proposed the penalty after SkyCity Adelaide admitted it did not fully adhere to the provisions of the AML/CTF Act. The casino operator acknowledged that these failings could enable bad actors to conduct criminal activities, endangering the Australian public and potentially undermining the country’s financial system.

    Peter Soros, AUSTRAC’s acting CEO, emphasized that the gambling sector could not safely function without stringent anti-money laundering measures. He noted that weak AML enforcement could enable criminal exploitation, which in turn facilitates further illegal enterprises, including organized crime like drug and human trafficking, which could extend beyond the country’s borders.

    “Criminals will always seek to take advantage of the gambling sector to clean their dirty money.”

    Peter Soros, AUSTRAC acting CEO

    According to SkyCity’s admissions, the company had failed to conduct mandatory checks on 121 customers. Furthermore, the company’s senior management lacked adequate preparation to oversee its AML/CTF programs. These deficiencies are similar to those of competing operators Crown Resorts and Star Entertainment, which still face significant regulatory scrutiny due to their past failings.

    There Is Hope on the Horizon

    This newest ruling could have more than just financial implications for SkyCity Adelaide. The operator currently faces a state-level investigation to determine its suitability to hold a casino license. Failure to meet the state’s criteria could have disastrous repercussions for the company, potentially shutting down its businesses until it can regain compliance.

    SkyCity’s troubles extend beyond Australia. February saw the company fall under the scrutiny of the New Zealand Department of Internal Affairs. The authority prepared to launch civil proceedings against the operator, citing alleged AML and CTF violations. If found guilty, SkyCity casinos in Auckland, Hamilton, and Queensland could face further monetary sanctions.

    The ongoing compliance issues with high-profile Australian casinos highlight the country’s ongoing difficulties enforcing compliance within its gambling sector. Despite SkyCity’s deficiencies, the beleaguered operator can still follow in the footsteps of its rival Crown Resorts. Despite its much more substantial failings, Crown managed to rebuild and earn back the trust of regulators, giving hope to SkyCity.

    Deyan Dimitrov

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  • AUSTRAC and SkyCity Adelaide Agree to $67M Penalty Proposal

    AUSTRAC and SkyCity Adelaide Agree to $67M Penalty Proposal

    Gaming and entertainment company that provides sports, amusement, and recreation services, SkyCity Adelaide Pty Ltd (SkyCity), and the Australian Transaction Reports and Analysis Centre (AUSTRAC) have filed joint submissions with the Federal Court of Australia. 

    Their proposed AU$67 million penalty mentioned in the joint submissions was deemed appropriate in the context of the casino’s contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

    SkyCity Admitted to Breaching Parts of the AML/CTF Act

    The court has set the date of the hearing for June 7, when Justice Lee will ponder the parties’ proposed settlement and establish whether the proposed penalty amount would suffice in all the circumstances. 

    When reaching the agreement, SkyCity admitted that it did not fully comply with the AML/CTF Act. 

    The company explained its AML/CTF Programs failed to meet the requirements of the AML/CTF Act and Rules, in contravention of section 81.

    SkyCity also admitted to not effectively completing ongoing customer due diligence regarding higher-risk customers as well as customers who were completing transactions via higher-risk channels, which went against section 36.

    High-Risk Practices “Allowed to Continue Unchecked For Many Years”

    As argued by AUSTRAC’s chief executive officer, Brendan Thomas, they “took this action out of concern” that SkyCity’s conduct meant that a series of high-risk customer relations, behaviors, and practices were allowed to carry on “unchecked for many years.”

    Thomas called the action an important reminder for the gaming industry and casinos to take all of their AML/CTF obligations seriously and keep a close eye on all risks regarding money laundering and terrorism financing.

    In March, the Australian Government agency responsible for detecting and disrupting criminal abuse of the financial system and keeping communities safe from organized crime launched an AML probe into Bet365’s Hillside brand.

    At the end of last May, South Australian Liquor and Gambling commissioner Dini Soulio required SkyCity Adelaide to appoint an independent expert to revise its AML and CTF programs, according to Section 10 of the Gambling Administration Act 2019, 

    The decision was expected to provide an “independent perspective” regarding casino’s AML and CT financing programs while also adding an extra layer of assurance. 

    The independent expert was also asked to conduct similar procedures in relation to the minimization of gambling harm.

    The SkyCity Entertainment Group has over 3,400 employees based in Australia and New Zealand and also owns and operates various Auckland, Hamilton, and Queenstown casinos.

    Melanie Porter

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  • SkyCity Entertainment Puts Jason Walbridge at the Helm

    SkyCity Entertainment Puts Jason Walbridge at the Helm

    SkyCity Entertainment announced the official appointment of Jason Walbridge as the company’s new chief executive officer. The new hire will leverage over 20 years of experience to underpin the company’s growth amid regulatory trouble.

    As announced by SkyCity, Walbridge boasts an impressive track record and is currently sitting on the boards of several noteworthy companies. In addition to becoming a board member of Kinectify in February, SkyCity’s new CEO is also a strategic advisor to Aristocrat Leisure and executive chairman of the National Entertainment Network, the largest amusement route operator in the USA.

    He has also held positions at NYX Gaming, which was eventually acquired by Light & Wonder. Additionally, Walbridge has served Aristocrat Leisure for over 18 years, holding a variety of roles in New Zealand and America.

    The CEO appointee’s earlier career also included senior roles within consulting, including with Ernst & Young.

    According to SkyCity’s announcement, Walbridge was selected as the company’s new chief executive following an extensive international search. He is expected to step into the office in early July 2024, following his move back to New Zealand. Until then, Callum Mallet will continue serving as interim CEO.

    Walbridge’s appointment as CEO is subject to the usual regulatory approvals.

    Chair Cook Welcomed Walbridge on Board, Thanked Mallet for His Service

    Julian Cook, SkyCity Entertainment’s board chairman, commented on the new appointment and expressed the company’s excitement to welcome Walbridge as CEO of the company. He added that the team is looking forward to the valuable contributions he is expected to make to the business.

    Jason has extensive global experience in the land-based and online gaming industries, which will position him well to lead SkyCity through its next phases.

    Julian Cook, board chair, SkyCity

    Cook also used the opportunity to thank Mallet for his invaluable contributions as interim CEO.

    Walbridge also commented on his new appointment, expressing his excitement about the opportunity to lead a company such as SkyCity.

    It will be a privilege to lead SkyCity, and I am excited to be joining the business at this time as SkyCity looks to pursue the many opportunities ahead of it.

    Jason Walbridge, CEO appointee, SkyCity

    In the meantime, SkyCity continues to be embroiled in regulatory troubles in Australia and New Zealand because of AML failures.

    Angel Hristov

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  • SkyCity Risks Civil Proceedings Because of AML Failures in New Zealand

    SkyCity Risks Civil Proceedings Because of AML Failures in New Zealand


    SkyCity Entertainment’s SkyCity Casino Management (SCML) brand has found itself in hot water in New Zealand as the local Department of Internal Affairs prepares to launch civil proceedings against the operator.

    The case is set to be filed in four days and stems from alleged AML violations. According to the department, the gambling company has breached the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act.

    As a result, SCML, which operates the SkyCity casinos in Auckland, Hamilton and Queensland, now risks a fine of $4.9 million.

    SkyCity confirmed that it is aware of the proceedings and vowed to cooperate with the Department of Internal Affairs to identify and tackle any issues. In a statement, a spokesperson said that the operator is “disappointed that it has not met the standards to which it needs to hold itself.”

    SMCL and its parent company reiterated their commitment to collaborating with the department in relation to the proceedings and resolving the matter as soon as possible. The operator also promised to work hard to bolster its AML and CTF processes.

    Details of the violations SkyCity allegedly committed are not available as of the time of this writing. However, SkyCity mentioned that it had self-reported some of these incidents to the relevant departments.

    SkyCity Struggles to Get Its AML Matters Under Control

    Back in 2021, SkyCity launched an AML and CTF enhancement program in an attempt to address its historical deficiencies. In order to tackle its shortcomings, the company invested in technology and manpower, hoping to improve its practices.

    However, this hasn’t prevented the company from finding itself in trouble.

    In September 2023, SkyCity announced that it risks getting its license suspended for 10 days or more. The suspension risks had to do with an application by the Secretary of the Department of Internal Affairs which addresses a case from February 2022.

    It is unclear whether that case bears any connection to the current civil proceedings risked by SkyCity.

    In August, the company also set aside $29.2 million for a potential AML and CTF penalty amid AUSTRAC proceedings in Australia. The financial intelligence agency claimed the company has allowed 59 suspicious patrons to launder billions of Australian dollars at its property in Adelaide.



    Fiona Simmons

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