SkyCity Meltdown-Shares Plummet and Reputation Tarnished as Threats of License Suspension Makes Headlines
SkyCity Entertainment has made headlines after one of its casinos allegedly breached responsible gambling laws in New Zealand. The Group operates five casino properties in New Zealand and Australia, including SkyCity Casino – the casino in question. News emerged that it could lose its gambling license for 10 days over alleged gambling rule breaches.
This came after a complaint was made by a former Auckland client who gambled at the casino from August 2017 until February 2021. He complained that SkyCity Online Casino violated its responsible gambling rules by allowing him to continue gambling, even though he had accumulated massive debt. The responsible gambling policy dictates that when NZ online casino players gamble for five hours or more without stopping, the casino’s staff should be alerted, and the gambler monitored.
The Department of Internal Affair’s General Manager of Regulatory Services, John Sneyd, commented that according to the New Zealand Gambling Act 2003, SkyCity failed to comply with the terms outlined in its license. He emphasized their strong commitment to minimizing the negative impact of gambling and highlighted that they had an unwavering stance towards enforcing penalties on licensed gambling operators that fail to comply with responsible gambling laws. The DIA advised the Gambling Commission to suspend SkyCity’s licence for 10 days. The potential suspension will be applied to SkyCity’s online casino and sportsbook and will not impact their non-gaming operations, such as hotels, bars and restaurants. The news impacted strongly as SkyCity’s shares plummeted by around 18%.
The Gambling Act 2003 in NZ
The Gambling Regulation Act 2003 is a law that governs gambling in New Zealand. The Act is in place to ensure responsible gambling and reduce the harm caused by gambling addiction. The Act outlines the rules and regulations for different types of gambling including lotteries, online casinos and Online sportsbooks, bingo, and keno. The Act allows the Government to prevent gambling harm, reduce gambling-related crime, and ensure that gambling revenue benefits the community.
A SkyCity spokesperson confirmed to media that it intends to fully cooperate with the authorities with regards to the application. It said it was committed to maintaining the highest standards of responsible gambling and had always prioritized minimizing the risks associated with problem gambling, investing heavily in responsible gambling.
Last month, the group engaged an independent expert to assess the casino’s anti-money laundering and anti-terrorism programs to ensure broader scrutiny.
SkyCity Casino is dedicated to ensuring top quality, responsible gambling for players vulnerable to gambling addiction and preventing underage gambling. Kiwis who feel their gambling is becoming a problem can activate deposit limits, reality checks, timeouts, and self-exclusion. The casino also offers a self-assessment test that users can complete to gauge the health of their gambling behaviour.
According to the Ministry of Health NZ, not all gamblers are problem gamblers. Instead, research shows that only two percent of adults in NZ are vulnerable to gambling addiction.
Background of SkyCity Casino in NZ
SkyCity Online Casino NZ belongs to the SkyCity Entertainment Group Limited – NZ’s largest tourism, leisure and entertainment company. The group owns entertainment complexes in Auckland, Hamilton, Queenstown in NZ, as well as Adelaide in Australia. Each casino resort features gambling, as well as premium restaurants and bars. SkyCity Online Casino launched in August 2019 as an offshore online gaming business for New Zealanders and an extension of its land-based casino operations.
SkyCity Online Casino offers players from New Zealand over 1000 casino games made of classic slots, multi-reel video slots, video Poker, progressive jackpot games, poker, blackjack, roulette and baccarat games, video poker, and Live Dealer Casino games. The casino also offers virtual sports, allowing players to engage with realistic sports entertainment.
Conclusion
Analysts predict that losing a gambling licence for 10 days could cost SkyCity up to $/€13 million in lost revenue. While the Gambling Commission considers the license suspension, the DIA has confirmed that their decision could still be many months away, so we will have to wait and see what happens.
In NZ, responsible gambling is regulated by the DIA, which is accountable for setting policies and ensuring compliance to promote responsible gambling practices. With a robust regulatory framework in place for the online gambling industry, all NZ licensed operators must adhere to strict rules including responsible gambling policies and player protection measures.
If you feel that your gambling has gotten out of hand or you are struggling to control how much you spend online, please consult the Responsible Gambling pages and take back control. Set limits on how long you play, or self-exclude temporarily until you are on the road to recovery. SkyCity’s Responsible Gambling pages offer links to support groups, such as the Salvation Army Oasis, and protection tools, like CYBERsitter, a downloadable programme that helps parents implement the prevention of underage gambling.
