Adelaide SkyCity casino told by high court to pay more than $13 million in taxes relating to loyalty points being converted
SkyCity casino in Adelaide city, having to pay $13 million under an Australian high court appeal ruling in 2024, followed it also being hit that year with a $67 million civil penalty from the Australian federal court over its anti-money laundering and counter-terrorism financing failing to meet legislative requirements.
Adelaide’s SkyCity casino had to pay more than $13 million in unpaid taxes to the South Australia government after it lost an appeal to the Australian high court in 2024.
The case involved interpreting South Australia's Adelaide Casino Duty Agreement 1999 relating loyalty points converted to gaming machine play and deducting the loyalty points earned in calculating casino taxes. Earlier in 2024, the South Australian court of appeal ruled in favour of the South Australia government treasurer’s view that “credits on gaming machines arising from conversion of loyalty points, when played by customers, are to be included in gaming revenue for the purpose of calculating casino duty”.
After the Australian high court confirmed the state court of appeal’s interpretation of the 1999 agreement, South Australian government treasurer Stephen Mulligan also lodged a cross appeal relating to interest payable. Thee South Australian court of appeal ruled in favour of SkyCity that a clause on paying interest was unenforceable. With high court ruling in favour of the treasurer’s position, SkyCity faced up to $25.3 million in penalty interest on the unpaid casino taxes. The amount of interest payable on outstanding duty would be determined by a single judge of the South Australian supreme court.
For SkyCity, the high court ruling followed a fall of profits of nearly 2000% in profits in 2023-24 amid an ongoing investigation into whether the company was suitable to hold a casino licence in South Australia. SkyCity, running five casinos across Australia, New Zealand and online, recorded a net loss of $130.8 million in the 12 months.
Also in 2024, SkyCity paid a $67 million civil penalty after the Australian federal court ruled that its anti-money laundering and counter-terrorism financing failed to meet legislative requirements South Australian former supreme court judge Brian Martin was investigating whether SkyCity was fit to hold a casino licence.
