New Zealand Casino Faces Five-Day Closure as part of Temporary License Suspension

In a significant development for New Zealand’s gambling sector, SkyCity Entertainment Group will temporarily close its Auckland casino for five days in 2024 after admitting to breaching the Gambling Act. This unprecedented move follows the company’s admission to breaches in host responsibility requirements, resulting in a settlement with the Department of Internal Affairs (DIA).

The closure, the first voluntary casino shutdown in New Zealand, highlights the importance of addressing issues related to the casino’s harm minimization obligations. The DIA investigation was prompted by a complaint from a customer who gambled at SkyCity Auckland from 2017 to 2021. Findings revealed that the casino failed to adequately monitor and intervene in instances of continuous gambling by this customer, breaching its Host Responsibility Programme (HRP). According to an official statement by the DIA, the casino’s technology did not detect continuous play, and staff oversight was insufficient to address the behavior promptly.

The New Zealand Herald reports that the person gambled more than NZ$1 million based on data from the Department of Internal Affairs.

As part of the settlement, SkyCity will undergo a comprehensive review and enhancement of its systems to better detect and prevent problem gambling behaviors. This includes the implementation of facial recognition technology and transitioning to a 100 percent carded, account-based play system by next year. This new system will ensure that no gaming activity can occur without verified identification.

The closure is expected to cost SkyCity approximately NZ$5 million in lost revenue. This action is contingent upon the Gambling Commission’s approval to withdraw the ongoing suspension proceedings against the casino operator’s license. The suspension application, originally lodged in September 2023, was for a ten-day period and stemmed from the same customer complaint.

SkyCity’s Chief Operating Officer for New Zealand, Callum Mallett, expressed regret over the company’s failures and vowed to oversee the enhancement of its risk management systems. The company has announced plans to implement mandatory carded play across its casinos in New Zealand. This is scheduled to take place by mid-2025, followed by its casino in Adelaide, Australia by the end of next year.

Board Chair Julian Cook acknowledged the considerable work required to improve their risk systems, including their approach to mitigating financial crime and problem gambling.

In an interview with the Midday Report, The Problem Gambling Foundation spokesperson Andree Froude pointed out that the action against SkyCity was a first and sent a clear message to other gambling operators. The foundation hopes that similar actions will be taken against any operators failing their host responsibility requirements, emphasizing the need for stringent consequences to prevent gambling harm.

Sources: Worldcasinonews / RNZ