Proposed legislation targets SkyCity with hefty fines

Jenny Ortiz April 24, 2024

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Proposed legislation targets SkyCity with hefty fines

The operator of Adelaide Casino, SkyCity, may encounter substantially heightened penalties, potentially reaching up to AUD75 million (€45.6 million) if found guilty of misconduct. This significant increase, proposed as part of an overhaul of South Australia’s (SA) gambling laws, aims to hold the state’s sole casino license holder accountable and align penalties with community expectations.

Addressing regulatory concerns?

ABC News quoted Australia’s Consumer and Business Affairs Minister Andrea Michaels as emphasizing the necessity to ensure fines serve as a genuine deterrent rather than merely a cost of business. The proposed legislation, to be introduced to parliament, seeks to not only raise penalties for criminal offences but also cover past and future conduct, enabling retrospective fines.

AUSTRAC allegations and financial Ramifications?

The proposed changes follow the Australian Transaction Reports and Analysis Centre’s (AUSTRAC) allegations of systemic non-compliance against SkyCity, including failure to carry out due diligence on numerous customers. SkyCity’s decision to increase reserves for potential civil penalties from AUD45 million (€27.3 million) to $73 million (€44.4 million) underscores the seriousness of the matter.

Regulatory oversight and accountability?

Acting Liquor and Gambling Commissioner Fraser Stroud highlighted the imperative of updating South Australia’s legislation, citing penalties issued in other states exceeding AUD100 million (€60.8 million). The proposed amendments aim to enhance accountability and ensure appropriate regulatory oversight of casino operations.

Political response and public scrutiny?

SA independent MP Frank Pangallo welcomed the proposed penalty changes, advocating for stringent regulation of SkyCity’s operations. Opposition leader David Speirs acknowledged the need to modernize casino laws and expresses tentative support for the government’s proposal, pending further review of the details.

Consultation and legislative process?

Consumer Affairs Minister Michaels affirms the government’s commitment to consulting parliament on the proposed changes once the bill is introduced. The outcome of this legislative initiative will likely shape the future regulatory landscape for Adelaide’s casino industry.?

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