New Zealand: SkyCity Auckland Casino to close for five days following license suspension settlement

SkyCity Entertainment Group has announced the closure of its Auckland casino from September 9 to 13 as part of a license suspension agreement with New Zealand’s Department of Internal Affairs (DIA).

The settlement, reached last month, requires SkyCity to shut down the gaming area and related food and beverage outlets for five consecutive days. Other facilities within the SkyCity Auckland precinct will continue to operate normally during this period.

The agreement stems from a complaint filed in February 2022 by a SkyCity Auckland customer, alleging non-compliance with responsible gambling regulations between August 2017 and February 2021. The DIA’s investigation raised concerns about the casino's failure to detect continuous play, leading to the secretary of internal affairs applying for a temporary suspension of the casino’s license in September 2023.

SkyCity CEO Jason Walbridge acknowledged the company’s shortcomings and expressed commitment to improving risk management systems. "The closure is the result of failings on the part of SkyCity, which we have accepted responsibility for,” Walbridge stated. “We failed to meet the standards expected of us in this case.”

Walbridge highlighted ongoing efforts to enhance customer care across the SkyCity Group. “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 underway and remain committed to prioritizing the care of our customers. We understand that the privilege of holding a casino license comes with significant responsibilities and obligations.”

In response to the compliance issues, SkyCity launched a multi-year transformation program in 2021 aimed at bolstering risk management. This initiative includes recruiting directors with expertise in risk management, establishing a dedicated risk and compliance committee, and increasing internal and external audit capabilities.

The company has also appointed a group chief risk officer and plans to implement mandatory carded play at its New Zealand and Australian casinos by mid-2025. The DIA acknowledged these efforts during settlement discussions, recognizing SkyCity’s steps to mitigate future risks.

The five-day closure is expected to impact SkyCity’s financial performance, with an estimated loss of NZ$5.0 million ($2.97 million) in underlying group EBITDA for FY2025. SkyCity’s leadership has undergone changes, with Jason Walbridge assuming the role of CEO in April, succeeding Michael Ahearne.