SkyCity Entertainment Group Limited is New Zealand’s leading entertainment, leisure, and tourism company. Known simply as SkyCity, it’s dual-listed on both the New Zealand and Australian stock exchanges.
The gambling and entertainment company, which is based in Auckland, is being taken to New Zealand’s high court by the DIA (Department of Internal Affairs) gaming regulator in a civil proceedings case over anti-money laundering and countering terrorism financing laws.
The five separate civil actions could cost SkyCity millions in liability fines. Let’s dive straight in to discover if SkyCity can weather the storm of these upcoming civil proceedings. Further down, we will also take a quick look at the iGaming space within New Zealand.
Why has the Department of Internal Affairs gaming regulator filed a civil case against SkyCity?
The civil action by New Zealand’s DIA gaming regulator against SkyCity Casino Management (SCML) – a subsidiary of casino operator SkyCity Entertainment Group, is expected to be filed in the high court on Friday, February 16, 2024.
The civil penalty proceedings include allegations that the gambling and entertainment company didn’t comply with the Anti-Money Laundering and Countering Financing of Terrorism Act.
The matters at hand are predominantly historical matters (between August 2017 and February 2021), some of which had previously been self-reported to the DIA by SkyCity.
Following a complaint made about SkyCity in early 2022, the company announced on September 9 last year that the DIA had requested a temporary suspension of SkyCity’s operating licence in New Zealand.
In one action, the company has been accused of failing to detect incidents of continuous play by a customer who gambled at the SkyCity Auckland casino between August 2017 and February 2021.
The company said it is disappointed it has failed to be fully compliant in certain areas and will remain focused on raising its standards and correcting historical shortcomings by upgrading and improving processes and systems, especially concerning matters related to the breach of host responsibility and AML/CFT.
The compliance issues have been addressed by carefully reviewing SkyCity’s processes and systems to pinpoint which key areas require improvement. The process has involved significant investment in people and technology.
SkyCity also operates integrated entertainment complexes in Adelaide, Australia, and just last week, the company agreed to pay Australian authorities a staggering penalty of around $75 million for similar compliance breaches. However, the state investigation into SkyCity’s Adelaide casino licence by Australian authorities is still ongoing.
What is the iGaming industry like in New Zealand?
For the most part, legally permitted gambling activities in New Zealand are land-based. To walk into any of the country’s six casino buildings, you must be 18 years old or above.
When it comes to New Zealand’s iGaming landscape, online gambling activities, such as betting on horses and sports betting, are perfectly legal, but only at websites that are licensed and regulated by TAB (the Totalisator Agency Board) – New Zealand’s Racing & Sports Betting Agency.
New Zealand-based companies are prohibited from operating any online casino software and gaming services that can be accessed from Wi-Fi/internet-connected desktop computers and mobile devices, including games like online pokies and roulette.
Therefore, online casino players in New Zealand tend to sign up to ‘offshore iGaming sites’ controlled by foreign operators. They are licensed outside of the country and fall outside New Zealand’s jurisdiction.
Can NZ casino sites be trusted?
Yes. New Zealanders have access to some of the world’s best online casinos, many of which are featured on globally renowned iGaming review sites.
The highest-rated NZ online casinos are licensed and regulated by one or more of the iGaming industry’s most trusted licensing authorities. This means that New Zealand’s iGaming landscape has a range of reputable companies with excellent track records that control these sites, and they have everything a New Zealand player could want from an online casino.
The games on these websites are provided by 10 to 60 or more market-leading game development studios and software providers. They have above-average RTP% (Return to Player) payout rates and anywhere from 2,000 to 4,000 or more games to choose from.
Some of the other ways these sites cater to New Zealand players are by having 24-hour, toll-free support, accepting New Zealand dollars, and welcoming a wide range of reliable, secure, user-friendly, and convenient payment methods, such as eWallets, credit and debit cards, prepaid cards, and bank transfers.
Final note
SkyCity has stated that it would be inappropriate for them to comment any further until after the matter has been brought to court and resolved. If things don’t go their way, the maximum liability concerning the five separate civil action claims they would be forced to pay would be a maximum of $8 million.