SkyCity Adelaide (pictured) is facing an inquiry from regulators in South Australia similar to recent investigations into Crown Resorts and The Star Entertainment. [Image: Shutterstock.com]
Another investigation
SkyCity Entertainment Group is the latest casino operator to come under scrutiny in Australia. South Australian authorities have launched an independent investigation into the Adelaide Casino in Sky City.
Martin will complete the report by February 2023
according to News lettersThe investigation will be led by retired Supreme Court Justice and former Royal Commissioner Brian Martin AO QC. Requested by Denny Solio, Commissioner for Consumer and Business Affairs. SkyCity has confirmed that it will fully cooperate with the review, which Martin will complete the report on by February 2023.
AUSTRAC, the Australian Financial Crimes Authority, began its own investigation into SkyCity last year.
Suspicions were raised first
In 2021, AUSTRAC said it identified issues with SkyCity Adelaide’s management of high-risk clients and “politically exposed people”. These issues relate to its “ongoing customer due diligence,” along with its commitment to anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
The failures mentioned relate to two periods between July 2015 and June 2016 and then from July 2018 to June 2019. The company responded to the announcement by saying that it had taken its responsibilities seriously and would cooperate fully with the investigation.
methodological issues
Officials in multiple states in Australia are cracking down on casinos. Crown Resorts and The Star Entertainment have faced similar investigations. Both inquiries discovered deficiencies in judgment. Solio said these inquiries showed that the problems “go beyond any one organization and refer instead to broader systemic issues.”
Make adequate changes to its operations and governance
Crown has just regained its Sydney casino license after an investigation found it unsuitable for a single contract last year. Last month, it received news that the casino could finally open at the A$2.2 billion ($1.5 billion) Barangaroo property. Officials determined that Crown had made sufficient changes to its operations and governance.
Meanwhile, Queensland launched an investigation into the licensing of Star Entertainment Casino last month. The government had concerns about allegations of integrity and money laundering issues. This followed a similar investigation in New South Wales. Since the investigations began, Starr’s high-profile resignations have included CEO Matt Becker and Chief Financial Officer Harry Theodore.
