South Australian authorities have launched an independent inquiry into SkyCity's Adelaide casino, following similar investigations in other states.
The review is expected to be completed by 1 February next year. Photo: (Pixabay CC0 Public Domain)
Regulators across Australia have been cracking down on casinos for potential breaches of anti-money laundering laws, weak governance and poor corporate culture in the past couple of years.
SkyCity was already under investigation by Australia's federal financial regulator Austrac for potential serious non-compliance with laws at its Adelaide casino last year.
The concerns related to potential breaches of necessary due diligence and management of "customers identified as high risk and politically exposed".
South Australia's Liquor and Gambling regulator said it was reviewing SkyCity's operations to ensure the company was still suitable to hold a casino license in Adelaide.
Similar probes into its competitors had found a number of shortcomings.
"Inquiries to date have highlighted significant failings on the part of Crown Resorts as operators of Crown Casinos," Liquor and Gambling Commissioner Dini Soulio said.
In addition, Star Entertainment Group was the subject of a current inquiry in New South Wales where significant failings have been identified, he said.
"A number of the matters raised to date extend beyond any one organisation and point instead to broader systemic issues within the casino industry."
Retired Supreme Court judge and former royal commissioner Brian Martin AO WC would lead the inquiry.
SkyCity said it would fully cooperate with the review and any request for information.
The review is expected to be completed by 1 February 2023.
Forsyth Barr analyst Andy Bowley said there was nothing to suggest the investigation was prompted by new information that had come to light in Austrac's ongoing investigation.
"Regardless, this is a clearly negative for [SkyCity] with the regulatory pressure ramped up and likely to continue to weigh on sentiment until there is more clarity in both investigations."
He said the bigger issue for SkyCity was whether there would be any potential spillover to New Zealand's regulatory landscape.
"[SkyCity] has been investing and upskilling in surveillance and anti-money laundering processes in recent years.
"This may help to reduce regulatory concerns on a forward basis but may not protect [SkyCity] from any potential historical issues."