By David Winning
SYDNEY–Sky City Entertainment said it would book a provision for a potential penalty for alleged non-compliance with Australian anti-money laundering and counter terrorism financing laws, while also impairing its license to operate a casino in Adelaide.
Sky City said the provision totals 45 million Australian dollars (US$29.4 million), but cautioned that the civil penalty sought by the Australian Transaction Reports and Analysis Centre, or Austrac, could be larger.
“The size of any penalty SkyCity Adelaide is exposed to could vary materially from the amount of the provision and significant uncertainties remain,” the company said in a regulatory filing on Monday. “The timing of any civil penalty to be paid by Sky City Adelaide is also uncertain.”
Sky City said it also intended to write down the value of its Adelaide casino license by A$45.6 million.
Still, the company reaffirmed guidance for normalized earnings before interest, tax, depreciation and amortization of between 300 million New Zealand dollars (US$181.6 million) and NZ$310 million in the 12 months through June.
Write to David Winning at [email protected]
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