SkyCity Adelaide makes financial preparations for AUSTRAC fine
One of three casino operators to face legal proceedings brought about by Australia’s financial crimes watchdog AUSTRAC, SkyCity Adelaide is putting aside $45 million to fund any civil penalty as a result of the pending federal court case over alleged breaches of its anti-money laundering and counter terrorism financing obligations.
The SkyCity Adelaide development includes luxury hotel Eos by SkyCity and a dedicated events floor for conferences and other gatherings of up to 600.
In its note to the share market SkyCity notes the “considerable uncertainty” surrounding the size of the fine SkyCity Adelaide might be required to pay and that it might be “significantly higher or lower than the [$45 million] provision”. The timing of the fine is also unknown with the court case still ongoing. SkyCity Adelaide is also facing a state-prompted independent review of its suitability to hold a casino licence.
Crown Resorts recently agreed to a $450 million fine brought about by AUSTRAC legal proceedings, while The Star Entertainment Group is also in the midst of a federal court case initiated by AUSTRAC for broadly similar breaches as both Crown and SkyCity.
Queen’s Wharf Brisbane facing legal action from Multiplex
Meanwhile The Star Entertainment Group continues to face challenges, this time as a 50 per cent stakeholder in the delayed Queen’s Wharf development in Brisbane.
The much anticipated $3.6 billion complex on the banks of the Brisbane River has already had its opening pushed back to April 2024. Now its building contractor Multiplex has launched legal action in the Queensland Supreme Court over delays and additional costs related to the major development. The Star has acknowledged the court action and says there are counter claims for delays in hitting project milestones.
The Australian Financial Review has reported that Multiplex is seeking up to $420 million in payouts.
The Star’s statement says the consortium behind Queen’s Wharf intends to defend the claims.
Once complete, Queen’s Wharf will offer considerable event space, including capacity for up to 2,000 pax in The Event Centre which is part of The Star Brisbane.
This article was updated on August 22 to reflect the correct value of the Queen’s Wharf development – $3.6 billion rather than $2.6 billion.