Last month, SkyCity reached an agreement with New Zealand’s department of internal affairs (DIA) to settle the case related to its Auckland facility. It was agreed that the gaming area of the venue would close for five consecutive days.
Today (2 August), SkyCity confirmed that this period of closure would take place next month and only applies to the gaming area and food and beverage outlets in this section. All other areas of the SkyCity Auckland precinct will remain open.
The case dates back to February 2022 when a SkyCity Auckland customer filed a complaint with the DIA. This was in reference to a failure to comply with responsible gambling requirements between August 2017 and February 2021.
Analysing the case, concerns were raised over detecting continuous play at the casino. As such, the secretary of internal affairs applied to temporarily suspend SkyCity subsidiary SCML’s casino licence in September 2023.
The case was finally settled last month when a five-day closure period was agreed. This is expected to hit underlying group EBITDA in SkyCity’s FY2025 earnings, with a total loss of approximately NZ$5.0m (£2.3m/€2.8m/$3.0m).
SkyCity CEO: We failed to meet standards
Commenting on the confirmed closure dates, SkyCity CEO Jason Walbridge reiterated that the group accepts its failings. He also highlighted how the operator is continuing to work to improve its systems.
“The closure is the result of failings on the part of SkyCity, which we have accepted responsibility for,” Walbridge said. “We failed to meet the standards expected of us in this case.
“Over recent years, we have made significant progress to strengthen how we manage risk across the SkyCity Group, but there is still work to do. We are well under way and remain committed to prioritising the care of our customers.
“We understand that the privilege of holding a casino licence comes with significant responsibilities and obligations.”
What has SkyCity done to mitigate future risks?
As to the action taken by SkyCity, it launched a multi-year transformation programme in 2021 to strengthen risk management. This includes recruiting new directors with specialist risk experience and establishing a dedicated risk and compliance committee.
Other changes include increased internal audit capabilities and external audit scrutiny and appointed a group chief risk officer. It has also committed to implement mandatory carded play at casinos in New Zealand by mid-2025, with this also set to be rolled out in Australia.
In addition, SkyCity in April announced a change of leadership, bringing in the experienced Walbridge as its new CEO. Walbridge joined in replacing Michael Ahearne, who recently left the group.
These efforts were noted by the DIA during last month’s settlement talks.