SkyCity chairman Julian Cook says the company will probably admit allegations that its Australian casino operation breached anti-money laundering laws and pay a multi-million dollar penalty.
鈥淲e are yet to strike a final agreement with Austrac, but, if we do, it will most likely include admissions of such nature,鈥 Cook told聽Markets with Madison.
鈥淲e will probably be paying a fine.鈥
Australian financial regulator Austrac alleged serious and systemic non-compliance with anti-money laundering and counter-terrorism financing laws in SkyCity鈥檚 Adelaide casino in December last year.
A final outcome has not yet been reached but SkyCity has put A$45 million (NZ$49.5m) aside to pay for potential penalties relating to potential failings.
Cook noted at its annual shareholder meeting last week that the actual fine may vary.
At that same meeting on Friday he told shareholders he was 鈥渦nvarnished鈥 and admitted many mistakes had been made within the business.
They included failings with its facial recognition tool in its New Zealand casinos to detect problem gamblers, used as part of its adherence to host responsibility rules.
That was the crux of a customer complaint that could result聽.
Asked whether that issue could result in more complaints and suspensions, Cook said, 鈥渘ever say never鈥.
Investors have been selling the stock, pushing its share price down 34 per cent in the past year and by 50 per cent in the past five years to $1.90.
Watch this interview with Julian Cook in today鈥檚 episode of聽Markets with Madison聽above to hear what he鈥檚 doing to lift the entertainment group鈥檚 compliance standards and its market valuation.
Get investment insights from the experts on Markets with Madison every Monday and Friday on the NZ Herald.
Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
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Madison Reidy is the host of New Zealand鈥檚 only financial markets show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
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