{"id":240391,"date":"2022-11-01T06:50:29","date_gmt":"2022-11-01T11:50:29","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=240391"},"modified":"2022-11-02T09:14:20","modified_gmt":"2022-11-02T14:14:20","slug":"skycity-entertainment-admits-it-could-face-huge-fines-over-aml-failings-in-australia","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/skycity-entertainment-admits-it-could-face-huge-fines-over-aml-failings-in-australia\/","title":{"rendered":"SkyCity Entertainment Could Face Huge Fines Over AML Failings in Australia"},"content":{"rendered":"

SkyCity Entertainment Group, the New Zealand-based casino operator, is preparing for the worst. It’s facing two investigations linked to its casino in Adelaide<\/a>, Australia, and is setting aside a significant amount of cash in anticipation of having to pay huge fines.<\/p>\n

\"SkyCity
SkyCity Adelaide stands against a backdrop of a night sky. The SkyCity Entertainment Group casino in Australia acknowledges that it could face fines over regulatory violations. (Image: Business News Australia<\/em>)<\/figcaption><\/figure>\n

Australia\u2019s Transaction Reports and Analysis Center (AUSTRAC) and South Australia\u2019s (SA) Office of the Liquor and Gambling Commissioner (OLGC) are both looking into SkyCity. They’re responding to concerns that the Adelaide casino failed to adhere to anti-money laundering (AML) procedures on multiple occasions.<\/p>\n

The scrutiny is reminiscent of the still-hot scandals involving Crown Resorts and Star Entertainment<\/a>. Based on the record fines both of those casino operators faced across Australia, SkyCity has an idea of what might be coming.<\/p>\n

The Writing on the Wall<\/h2>\n

Glenn Davis, the recently-appointed chairman of SkyCity Adelaide, told shareholders last Friday that the company has been making preparations for the worst. In the event that AUSTRAC and the gaming regulator determine that breaches warranting financial penalties occurred, SkyCity is making sure it has enough liquidity to cover them.<\/p>\n

\n

The OLGC launched an informal inquiry this past July that followed the investigations into Crown and Star. Both of those violated AML policies in New South Wales (NSW), Queensland, and other states. The regulator stated recently that it will report the results of the inquiry next February.<\/p>\n<\/div>\n

AUSTRAC\u2019s more thorough investigation has been in play since June 2021. SkyCity Entertainment chair Julian Cook telling shareholders that the financial watchdog has come back nine times to request more documentation.<\/p>\n

AUSTRAC conducted a review of the Adelaide casino in 2016, which didn\u2019t find any issues, according to Cook. After it began taking a closer look in 2019, it uncovered concerns dating back to that time.<\/strong><\/p>\n

There were other questions about some \u201cserious con-compliance\u201d that may have occurred between 2018 and 2019 as well. These concerns made it virtually impossible for SkyCity to make a play for a casino license in NSW when the Crown debacle was coming to a head.<\/p>\n

Behind the Eight Ball<\/h2>\n

One of SkyCity\u2019s shareholders spoke up during the meeting last Friday, accusing company staff of being \u201cbehind the eight ball\u201d in terms of AML compliance. The unidentified investor showed frustration with SkyCity\u2019s apathetic approach toward legislation instead of proactively ensuring it was playing by the rules.<\/p>\n

Cook fielded the question, acknowledging that there were issues and calling the situation \u201cdisappointing.\u201d He stated that SkyCity is now taking a \u201csingular focus\u201d to address the shortcomings.<\/strong><\/p>\n

Among these responses are the creation of a dedicated compliance team, an increase in staffing for compliance, and investments in infrastructure. Because these developments are reactive and not proactive, there is still the chance that SkyCity will be hit financially by regulators.<\/p>\n

\n

Star paid well over AU$100 million<\/a> (US$62.3 million) for its egregious pattern of policy failures. It isn\u2019t likely that SkyCity would have to pay close to that, but the company\u2019s ready, just in case.<\/p>\n<\/div>\n

CEO Michael Ahearne said that its \u201cliquidity headroom\u201d is more than three times what the company expects to maintain under normal operating conditions. Only time will tell if it\u2019s enough.<\/p>\n","protected":false},"excerpt":{"rendered":"

SkyCity Entertainment Group, the New Zealand-based casino operator, is preparing for the worst. It’s facing two investigations linked to its casino in Adelaide, Australia, and is setting aside a significant amount of cash in anticipation of having to pay huge fines. Australia\u2019s Transaction Reports and Analysis Center (AUSTRAC) and South Australia\u2019s (SA) Office of the […]<\/p>\n","protected":false},"author":64,"featured_media":240390,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,33810],"tags":[81985,13363,81915],"acf":[],"yoast_head":"\nSkyCity Entertainment Could Face Huge Fines Over AML Failings in Australia - Casino.org<\/title>\n<meta name=\"description\" content=\"SkyCity Entertainment Group, the New Zealand-based casino operator, is preparing for the worst. 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