SkyCity's Auckland casino will be temporarily closed for five days later this year due to a licence suspension.

Penalty for SkyCity AML/CTF
This year, SkyCity Auckland will be closed for five days in a row as per the agreement. Although the exact timing is unclear, confirmation was given that the closure would end the case involving the licence suspension.

An ex-customer of SkyCity Auckland's lodged a complaint with the DIA in February 2022, which is relevant to the licence suspension application. This referred to the period from August 2017 through February 2021 when the casino did not adhere to regulations about responsible gambling.

After reviewing the matter, the secretary of internal affairs sought to provisionally revoke the casino licence of SCML, a SkyCity affiliate. There were worries about being able to detect nonstop gambling at the casino, it added then. In September 2023, the application for suspension was filed.

The closure is anticipated to have a negative impact on the firm's underlying group EBITDA in FY2025 profits, amounting to around NZ$5.0m (£2.3m.€2.8m/$3.0m).

Consequently, SkyCity has revised its FY2025 projection, indicating that underlying group EBITDA will now fall within the range of NZ$245.0m to NZ$265.0m. This is lower than the NZ$250.0m to NZ$270.0m that had been previously projected.

The SkyCity settlement: what's in it?
With the settlement in hand, SkyCity and SCML admitted they had failed to meet the responsible gambling standards and blamed a design flaw in their technological system for the particular continuous play failure, which had since been fixed.  

Additionally, SCML acknowledged that it was unable to detect continuous play using its technological method in conjunction with staff observation and intervention. It also formally apologised to the secretary of internal affairs for the incident.

The DIA recognised SkyCity's "swift" action and attempts to enhance its systems in its own reaction to the situation.

The DIA expressed its hope for SkyCity's continued improvement, praising the company's efforts to improve its performance in this area. 

Improving risk management is a priority for SkyCity.  
Julian Cook, chair of SkyCity, stated that the closure will end the situation and that the company has implemented new procedures to prevent similar problems in the future.

He acknowledged that efforts to enhance risk systems, particularly those dealing with financial crime and compulsive gambling, still needed to be made.

Focus, resources, and investment have all been areas where SkyCity has consistently failed to meet expectations. We will completely address this since it is unacceptable and as part of our commitment to satisfying our regulatory requirements and wider social licence.

To improve its risk management across the board, SkyCity began a multi-year transformation effort in 2021. Establishing a specialised risk and compliance committee and hiring additional directors with expertise in risk are all part of this process. In addition to appointing a group chief risk officer and enhancing internal audit skills, SkyCity has heightened external audit monitoring.

Additionally, all of SkyCity's New Zealand casinos will be required to use card games. This is scheduled for the middle of 2025, with the opening of its casino in Adelaide, Australia, following shortly after at the year's end.

On the other hand, SkyCity named seasoned gambling executive Jason Walbridge CEO starting in July, an announcement that was made in April. Michael Ahearne just departed the organisation, and Walbridge is stepping in to fill his shoes.

"Our top priority is continuing to provide a safe and responsible environment for all of our employees and customers," stated SkyCity COO Callum Mallett. "Our cooperative and constructive engagement with our regulators will continue."