SkyCity to temporary close Auckland Casino

• Industry News
• 19. 07. 2024.
• Dusan Savic

SkyCity will close its land-based Auckland casino for five days due to a licence suspension. The company has reached an agreement with New Zealand’s secretary of internal affairs to close the casino over consecutive days later this year.

This action will resolve the suspension case. The complaint was filed in February 2023, while the suspension application was made in September 2023. SkyCity has accepted its oversight, blaming the design error with the system that was eventually resolved.

Responsible gambling issues

The case was opened in February 2022 when a customer filed a complaint with the Department of Internal Affairs. The casino failed to comply with responsible gambling standards between August 2017 and February 2021, with the secretary of internal affairs applying to temporarily suspend SCML’s casino licence. The problems in question involved detecting continuous play.

The closure is expected to cause a loss of $5m, as shown in the company’s yearly earnings. SkyCity adjusts its FY2025 guidance, noting the group EBITDA will range from $245m to $265m. This represents a decline compared to previous guidance, which ranged from $250m to $270m.

Both SkyCity and its subsidiary, SCML, accepted their responsibility and failure. They blamed the design error in the technology system for the failure, despite having solved the issue in the meantime. SCML issued a formal apology to the secretary over this case. On the other hand, DIA confirmed SkyCity’s swift reaction and its attempts to strengthen the systems.

“It is encouraging to see the work SkyCity has done to lift its performance in this area and its public commitment to continue to improve,” noted DIA.

Improving Risk Management

SkyCity officials say there is still much work to be done regarding risk system improvement and the approach to mitigating problem gambling. However, measures have already been put in place to avoid similar issues. The company launched a multiyear transformation programme in 2021 to improve risk management.

The programme includes hiring new directors specialised in risk management, while the company has already founded a risk and compliance committee. Furthermore, a new chief group officer was appointed, and internal audit capabilities were enhanced. SkyCity also has to introduce obligatory carded play across its New Zealand casinos by mid-2025, with the Adelaide casino following.

In April 2024, SkyCity announced that Jason Walbridge, an experienced executive, had become the new CEO. The change has been in effect since July, with Walbridge replacing Michael Ahearne. Callum Mallett, SkyCity’s COO, says the company will still cooperate with its regulators.

“We remain committed to ensuring that we provide safe and responsible experiences and environments for our people and customers,” he added.