SkyCity suspends casino operations following investigation

The Auckland closure, which is likely to cost SkyCity NZ$5 million (AU$4.5 million), was announced on Thursday following a lengthy investigation.

New Zealand’s Department of Home Affairs (DIA) identified 23 cases where a customer was able to gamble continuously without SkyCity noticing, breaching licensing regulations that require the company to identify and support players with gambling addictions.

SkyCity has voluntarily agreed to the closure as part of the investigation solution.

“The settlement is an unprecedented result,” said DIA Gaming Director Vicki Scott.

“This is the first voluntary closure of a casino and the longest suspension of operations of a casino under the Gambling Act.

“Casinos and other gambling operators are subject to strict obligations when it comes to preventing and minimising gambling-related harm, including that associated with continuous, long-term gambling.”

When the outages first became known in September, the DIA proposed a ten-day closure.

The announcement of the charges cost SkyCity a quarter of a billion dollars in market value on the New Zealand Stock Exchange, according to Radio NZ. The share price opened at $2.33 and closed at $2.02.

Before the stock market opened on Thursday, the shares were worth $1.53.

SkyCity operates four casinos in New Zealand – in Auckland, Hamilton and two in Queenstown – as well as SkyCity in Adelaide and online gambling.

The troubled casino operator also admitted that it had failed to meet its obligations to combat money laundering and terrorist financing on both sides of the Tasman Sea.

In June, the company agreed to pay a penalty of A$67 million related to its Adelaide casino, and in May it was fined A$4.16 million (A$3.76 million) following a similar investigation into its Auckland branch.

– AAP