Regulatory Backdrop: A Landscape of Scrutiny
The appointment of Kroll Australia is set against a backdrop of heightened regulatory scrutiny on Australian gaming giants, including SkyCity Entertainment, Crown Resorts, and Star Entertainment Group. Investigations led by the Australian Transaction Reports and Analysis Centre (AUSTRAC) have revealed significant lapses in AML and CTF controls across these organisations.
Civil penalty proceedings were initiated against all three companies in December 2022, highlighting the urgent need for reform.
Kroll Australia’s Multi-Faceted Role
Kroll Australia, based in Sydney, has been tasked with a comprehensive mandate. The firm will conduct an in-depth review of SkyCity Adelaide’s existing AML and CTF policies, as well as closely examine the casino’s host responsibility and gambling harm minimisation programmes.
Should the review identify gaps or shortcomings, Kroll will introduce necessary amendments and closely monitor their implementation. All findings will be reported directly to the South Australian Liquor and Gambling Commissioner, ensuring a transparent and accountable oversight mechanism.
The Journey from Delay to Action
Originally slated for July 2022, the independent review of SkyCity Adelaide was postponed until February 2023 due to ongoing investigations by AUSTRAC. The Commissioner’s decision to now engage Kroll Australia adds an extra layer of assurance and provides an impartial lens through which the casino’s compliance efforts can be evaluated.
Financial Resilience: A Balancing Act
Navigating through regulatory challenges has not deterred SkyCity Adelaide from maintaining a strong financial footing. The casino has earmarked $45 million for potential settlement costs related to its alleged AML violations. Even with these fiscal obligations, SkyCity Adelaide has seen an uptick in its gaming earnings, and CEO Michael Ahearne continues to hold a positive outlook for what lies ahead.
The Road Ahead: Setting a New Standard in Compliance
The collaboration with Kroll Australia is more than just a regulatory requirement; it’s a statement of intent by South Australian authorities. As the gaming industry grapples with increased scrutiny, SkyCity Adelaide’s proactive measures could serve as a blueprint for other operators, encouraging them to elevate their compliance mechanisms to new heights.