SkyCity Settles NZ Casino Debacle with NZ$4.16m Agreement
Global gambling giant SkyCity Entertainment has signed a landmark settlement agreement in New Zealand, after years of fighting gambling compliance issues. The civil penalty was to the tune of NZ$4.16 million. SkyCity Entertainment – well-known as a top-paying online casino in NZ - signed the agreement with the country’s Department of Internal Affairs (DIA) and found there was zero evidence that the operator was involved in any money laundering when it came to its NZ online casinos.
The department’s, Mike Stone told reporters: “We have received the desired result without the extended duration and cost of court proceedings. While we consider these regulatory breaches to be serious, we are pleased that SkyCity was able to admit the breaches and acknowledged responsibility for what were significant failings.”
SkyCity executive chair Julian Cook apologised saying: “Over the past few years, considerable progress has been made towards upgrading our anti-money laundering and countering terrorism financing systems. This does not lessen the seriousness with which we take these breaches and we are disappointed that SkyCity is in this position.”
The casino giant has been at the forefront of civil penalties with regard to its NZ online casinos over responsible gambling practices.
The alleged non-compliance relates to social responsibility concerns and contravention of anti-money laundering (AML) protocols.
In 2019, the casino’s Auckland branch is alleged to have flouted AML laws by not appropriately managing and monitoring risks with gamblers. This resulted in various inquiries and probes into SkyCity and its procedures. Now, in 2024, a settlement agreement in this matter has finally been reached.
SkyCity’s Long-standing Issues in NZ
SkyCity has for the last few years made many headlines. One particular case involved responsible gambling laws that were allegedly breached in New Zealand. The Group operates five casino properties in New Zealand and Australia, including SkyCity Casino – the casino in question. News emerged in 2023 that it could lose its gambling license the alleged rule breach.
This came after a complaint was made by a former Auckland gambler who played 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 a 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 should be monitored.
The DIA’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 suspension applied to its top NZ online casino and sportsbook. The news impacted the group strongly as SkyCity’s shares plummeted by around 18% towards the end of last year.
The Gambling Act 2003 in NZ
In New Zealand, the Gambling Regulation Act 2003 is a law governing and regulating gambling. It is there to help ensure compliance and responsible gambling and it is aimed at reducing the harm caused by addiction.
In it, the rules for gambling in New Zealand are highlighted. It impacts many types of gambling including lotteries, keno, bingo, online casinos and online sportsbooks, which include minimum bet sportsbooks NZ.
With regards to this, a SkyCity spokesperson has said the group was committed to maintaining the highest standards of responsible gambling. In keeping with this, it said it had always prioritized mitigating the risks involved with problem gambling. It has done this by investing heavily in responsible gambling tools and measures.
SkyCity Casino said it was 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 Entertainment 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, and Queenstown in NZ, as well as Adelaide in Australia. Each casino resort features gambling, as well as premium restaurants and bars. SkyCity’s NZ Online Casino launched in August 2019 as an offshore online gaming business for Kiwis and was an extension of its land-based casino operations.
SkyCity Online Casino offers players from New Zealand over 1000 casino games including 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 platform also offers virtual sports, allowing players to engage with realistic sports entertainment.
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 SkyCity’s 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.
Latest New Zealand News
