SkyCity Entertainment Group (ASX:SKC, NZE:SKC) and SkyCity Adelaide entered into a nonbinding heads of agreement with the Commissioner for Liquor and Gambling in South Australia, which provides for a total fine of AU$21 million, according to a Friday Australian bourse filing.
The heads of agreement seeks to record a basis to fully and finally resolve all outstanding regulatory matters arising from the independent review and the findings of the Brian Martin report. It is to be followed by a formal binding tripartite agreement between SkyCity Adelaide, SkyCity, and the state of South Australia.
The total fine of AU$21 million is payable by SkyCity Adelaide in three instalments of AU$7 million, with the first due within 28 days of the tripartite settlement deed, the second within one year of the first instalment, and the third within two years of the first instalment.
Further, SkyCity Adelaide's board will comprise a majority of nonexecutive directors, including the chair, who are independent of SkyCity Entertainment and related entities, by Jan. 1, 2028. SkyCity Adelaide will appoint a Chief Executive who reports to the board. It is prohibited from delegating functions and responsibilities to SkyCity Entertainment without the Commissioner's approval.
SkyCity Adelaide also has an obligation to appoint an independent compliance auditor to report annually on compliance under the regulatory regime, to apply 12 months after completion of its three-year compliance transformation program, which is expected to be completed by June 2027.