In an update to the NZX, SkyCity said the civil penalty proceedings may result in the company's Adelaide casino being ordered to pay a penalty. Photo: bondvit/123RF
Casino operator SkyCity Entertainment says it may have to pay a penalty from civil proceedings in Australia for alleged breaches by its Adelaide casino.
The company has set aside $49 million (A$45m) to reflect its estimate of the potential exposure to penalties and legal costs associated with the proceedings, the company said.
Further, the Adelaide casino licence had been impaired by $49.7m (A$45.6m).
In an update to the NZX on Monday, SkyCity said the civil penalty proceedings may result in the company's Adelaide casino being ordered to pay a penalty, however AUSTRAC had not detailed the amount it proposed to seek.
The company said the proceedings were still in their early stages, with AUSTRAC and SkyCity Adelaide working towards agreeing facts and potential admissions.
"Considerable uncertainty remains regarding the amount of any civil penalty SkyCity Adelaide may be required to pay," it said.
"Any eventual civil penalty may be significantly higher or lower than the provision.
"The timing of any civil penalty to be paid by SkyCity Adelaide is also uncertain.
"The provision and impairment are non-cash, and do not impact normalised earnings for SkyCity's FY23 financial statements."
SkyCity will release its full-year results for the ended 30 June next Wednesday.
The company's earnings remained in line with the guidance of NZ$300-$310 million normalised operating earnings.
The civil penalty proceedings were filed in the Federal Court of Australia by the Australian Transaction Reports and Analysis Centre (AUSTRAC) last December, over alleged breaches of anti-money laundering and counter-terrorism financing laws.
It followed an investigation that began in June 2021 into the casino's compliance with the Australian Anti-Money Laundering and Counter-Terrorism Financing Act.