SkyCity New Zealand License Comes Under Question

The cloud of fines and penalties continues to hang over SkyCity, the real money casino operator that has been embroiled in a legal tangle related to regulatory breaches. After its casino in Adelaide was ordered to pay fines to the tune of $73.6 million for regulatory breaches, it now faces the threat of having its New Zealand license being suspended temporarily. This all comes not long after SkyCity reached a settlement with the New Zealand DIA.

Trouble on Multiple Fronts for SkyCity

SkyCity has been facing regulatory trouble since 2022, when it was the subject of an independent review that was tasked with determining if its Adelaide casino was fit to continue holding its license.

That review was subsequently halted temporarily in 2023, though, when the company was slapped with court hearings featuring the same casino but for a different reason – a possible breach of rules pertaining to counter-terrorism financing and money laundering in South Australia.

The court hearings have come to an end now and the result has been a deal with the Australian Transaction Reports and Analysis Centre (AUSTRAC) that requires SkyCity to pay fines to the tune of NZ$73.6 million for breaches that occurred between 2016 and 2022. This sentence has been passed with full approval of the Australian Federal Court.

The court hearings may have ended, but the review that the company was subjected to is slated to continue. Now, it would look at other issues, including SkyCity's suitability to keep its license. SkyCity could also face the ignominy of its New Zealand casino license being temporarily suspended. The reason given is breach of its host responsibility code.

SkyCity Chairperson Says Company Takes Responsibility for Falling Short

Speaking on the issue, SkyCity Chairperson Julian Cook said the company had not been able to properly fulfill its role in fighting money laundering. He said, “…While we take this responsibility seriously, we accept we have failed to live up to the standard required of us, and for this, on behalf of the SkyCity and SkyCity Adelaide Boards and management teams, I apologize.”

SkyCity to be Penalized in New Zealand As Well

In New Zealand too SkyCity was charged with breaching laws established to prevent money laundering and counter-terrorism financing. It was charged by the Department of Internal Affairs (DIA), which began proceedings in February 2024.

In late May 2024, it reached a settlement with the DIA. Under the terms of the settlement, it would pay a penalty of NZ$4.2 million and admit its guilt in the matter. The company admitted to the breaches, which were said to have occurred from 2018 to 2023.

Speaking for the company, chairperson Cook said, “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…On behalf of the SkyCity Board and management team, I accept and apologize for these long-standing failings.”

Regulatory Issues Resolved, But Threat of Loss of NZ License Still Persists

The regulatory issues may have been resolved, but the threat of SkyCity losing its casino license in New Zealand persists. The DIA made an application to the Gambling Commission in September 2023 for the temporary suspension of SkyCity’s operator license for approximately 10 days.

The review was initiated based on a complaint by a former customer of the casino in Auckland. In his complaint, the ex-customer said the casino was in direct breach of rules pertaining to the detection of incidences of continuous play between 2017 and 2021.