SkyCity Adelaide

In reply to the Hon. C. BONAROS ().9 April 2024).

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector, Special Minister of State): Minister Michaels has advised:

1. I have been notified of the resignation of Mr David Christian from his role of Chief Operating Officer Australia in accordance with the announcement made to the New Zealand Exchange and the Australian Stock Exchange on 8 April 2024.

2. I have previously advised that on 1 February 2024, SkyCity Entertainment Group Limited (NZ), the parent company of SkyCity Adelaide, announced that SkyCity Adelaide and AUSTRAC jointly informed the Federal Court that the parties have come to an agreement in relation to the contraventions that SkyCity Adelaide will admit in the proceedings and the amount of a civil penalty they will jointly propose to the Court, subject to finalisation of a statement of agreed facts and admissions.

It is understood from the market announcement that the resolution of the matter will involve SkyCity Adelaide admitting serious breaches of anti-money laundering laws and the imposition by the court of a material civil penalty.

A timetable has been put in place by the court to allow AUSTRAC and SkyCity to seek to finalise this process. If agreement is reached, it is however a matter for the Federal Court to determine the appropriate penalty in the proceedings.

Once the AUSTRAC proceedings have been resolved and the statement of agreed facts and admissions are available, the Liquor and Gambling Commissioner will then consider when the investigation by the Hon. Brian Marin KC into the suitability of SkyCity Adelaide Pty Ltd to hold the South Australia's casino licence and SkyCity Entertainment Group Limited (NZ) to be a close associate, should resume.

The Treasurer has advised:

3. On 21 March 2024, SkyCity Adelaide Pty Ltd ('SkyCity') applied to the High Court of Australia (the HCA) for special leave to appeal part of the judgement of the Court of Appeal, namely the answer given by the Court of Appeal on the converted credits issue. That is, the finding that credits on gaming machines arising from the conversion of loyalty points, when played by customers, are to be included in gaming revenue for the purpose of calculating casino duty. In light of this, the recovery of funds back to the state government has been placed on hold until the HCA has ruled on SkyCity's application for special leave to appeal and, if special leave is granted by HCA, the appeal itself.

4. In light of the response provided to question 3, I am unable to advise what amount will be required to be paid back to the state government by SkyCity in relation to taxation of its loyalty program.