SkyCity increases AUSTRAC penalty provision to A$73m

SkyCity has revised its provision for a potential AUSTRAC civil penalty and associated legal costs from A$45 million (NZ$49m) as at June 30 2023 to A$73m (NZ$79m) as at Dec 31 2023.

The company advised that the revised provision is an estimate and the final amount of the civil penalty and legal costs remains uncertain.

SkyCity expects a resolution to be reached during the 2024 financial year.

The update on the provision was made in connection with the preparation of SkyCity's financial statements for the six months ended Dec 31 2023.

The group financial statements and the revised provision are still subject to external audit and final review by the SkyCity Board.

The civil penalty proceedings against SkyCity Adelaide, filed by AUSTRAC in Dec 2022, are ongoing.

The matter is now listed for a hearing on June 7 2024, where the civil penalty will be imposed.

SkyCity Adelaide continues to cooperate with AUSTRAC.