
SkyCity agrees to a 5-day voluntary closure – a first in NZ under the Gambling Act
One of New Zealand’s biggest casinos, SkyCity Entertainment, will be closed for 5 days in Auckland following an investigation by the country’s Department of Internal Affairs (DIA). SkyCity agreed voluntarily to the closure making it the first of its kind under New Zealand’s Gambling Act.
It is assumed that this closure also impacts its top New Zealand online casino in Auckland. The DIA said that this voluntary agreement is an “unprecedented result” and the first under New Zealand’s Gambling Act.
In a press statement, released on 18 July 2024, the Department said the investigation identified 23 incidents where a customer was allegedly able to gamble continuously at one of SkyCity’s casinos without detection by its technical system. This system was meant to identify continuous play, in line with its responsible gambling practices. The DIA further claims that there was not enough staff oversight or interaction on this specific occasion.
The gambler in question racked up massive debt and complained that responsible gambling practices were not followed. The responsible gambling policy in New Zealand dictates that when Kiwi players gamble for five hours or more without stopping, the casino’s staff should be alerted, and the gambler monitored.
This week, SkyCity agreed to the 5-day voluntary closure relating to harm minimization obligations. This agreement follows an application by the Secretary of Internal Affairs to the Gambling Commission to suspend SkyCity’s operator license, prompted by a complaint from the customer in question, who carried out the gambling at its Auckland casino between 2017 and 2021. This agreement is conditional on the Gambling Commission consenting to the withdrawal of the proceedings.
The estimated loss of income to SkyCity due to this closure is believed to be around NZ$5 million.
SkyCity’s voluntary closure is the first under the NZ Gambling Act
The DIA said this week, that this agreement was an “unprecedented result” and the first voluntary closure under New Zealand’s Gambling Act.
“This is the first voluntary closure of a casino and is the longest suspension of operations in a casino under the Gambling Act,” said Vicki Scott, Director of Gambling at the DIA.
“We will be working closely with SkyCity to make sure it is compliant in the future. It is encouraging to see the work SkyCity has already done to lift its performance in this area and its public commitment to continue to improve.”
SkyCity has apologized to the DIA for the technical failings and is working towards repairing these.
In November 2023, a spokesperson for SkyCity said it would fully cooperate with authorities on this matter. At the time, it confirmed that the company was committed to maintaining the highest standards of responsible gambling and would prioritize mitigating the risks associated with problem gambling. It did this by heavily investing in safer gambling measures and tools. At SkyCity’s best New Zealand online casino, players will find deposit limits that can be activated, as well as reality check tools, timeout options, in addition to self-exclusion prompts. It further offers a self-assessment test that players can complete to check on their gambling behaviour.
SkyCity went a step further by hiring an independent expert to review and assess the casino’s anti-terrorism and anti-money laundering systems to ensure wider in-depth scrutiny. SkyCity Casino maintained that it was dedicated to ensuring responsible gambling for players vulnerable to addiction. Preventing underage gambling was also a big focus for the company.
Meanwhile, the DIA in its press statement, emphasized that gambling had the potential to cause harm to Kiwis and that as the primary regulator of gambling in New Zealand, it had a duty to prevent gambling harm.
“Casinos and other gambling operators have strict obligations when it comes to preventing and minimising harm from gambling, including those relating to continuous and long hours of play,” said Scott.
“We have a responsibility to keep New Zealanders safe by ensuring gambling operators take their harm minimization obligations seriously. We will respond firmly when operators fail to uphold those obligations.”
The DIA is accountable for setting policies in place and ensuring compliance to promote responsible gambling practices. With a robust regulatory framework in place for online gambling and minimum bet sportsbooks NZ, all licensed operators are required to adhere to strict rules including safer gambling policies and player protection measures.
Background of SkyCity Entertainment
SkyCity belongs to the SkyCity Entertainment Group Limited – NZ’s largest tourism, leisure and entertainment company. The group owns entertainment casino venues in Auckland, Hamilton, Queenstown in New Zealand, as well as Adelaide in Australia. Each casino resort features gambling, as well as premium restaurants and bars.
SkyCity’s best online casino NZ opened its virtual doors in August 2019 as an offshore gaming business for Kiwis as an extension of its land-based casino operations. This top-paying online casino NZ boasts over 1000 casino games, which include multi-reel video slots, classic slots, video Poker, blackjack, progressive jackpot games, poker, roulette and baccarat games, as well as a Live Dealer Casino. It also offers virtual sports, allowing players to engage with realistic sports entertainment.
In recent years, SkyCity has come under the media spotlight over this incident, which has severely impacted its land-based business.
THE NEW ZEALAND GAMBLING ACT 2003
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, bingo, online casinos, keno and minimum bet sportsbooks NZ.
The Act allows the Government to prevent gambling harm, reduce gambling-related crime, and ensure that gambling revenue benefits the community.
According to the Ministry of Health NZ, not all gamblers are problem gamblers. Instead, research shows that only two percent of adults in New Zealand are vulnerable to gambling addiction.