Photo: RNZ / Marika Khabazi
Casino operator SkyCity has agreed to pay a penalty of about $75 million (A$70m) for alleged breaches of anti-money laundering and counter-terrorism financing laws in Australia.
Australian authorities filed civil penalty proceedings in the Federal Court against SkyCity's Adelaide casino in December 2022.
The company has set aside a total of $79m (A$73m) for the case, which included the penalty and legal costs compared to the previous $49m (A$45m) it had set aside.
Forsyth Barr analysts estimated legal costs could range between A$1-3m.
SkyCity said it has come to an agreement with Austrac (Australian Transaction Reports and Analysis Centre) relating to which breaches it would admit to in the proceedings, and the amount it would pay as a penalty.
The company said the agreement was subject to finalising a statement of agreed facts and admissions.
Both parties have jointly informed the court following the agreement.
The court would decide the suitability of the agreed penalty, with a hearing scheduled for June this year.
"Notwithstanding the indication provided to the court, the final amount of any civil penalty and associated legal costs that SkyCity Adelaide may be required to pay remains uncertain," the company told the share market.
"The level of any penalty is a matter for the discretion of the court."
The agreement would likely provide some certainty for SkyCity, but the company faces two further regulatory hurdles.
The South Australian government was yet to complete its investigation into the suitability of SkyCity's Adelaide casino license, and the company was under threat of having its New Zealand casino license suspended.
SkyCity declined a request for additional comment.