SkyCity Entertainment Group is closing its casino located in Auckland, New Zealand from September 9-13 in accordance with the suspension of a license in that country.
SkyCity and the New Zealand Department of Internal Affairs (DIA) reached an agreement last month to resolve a case involving its Auckland facility. The gaming section of the facility was to be closed for five days in a row.
SkyCity announced today (2 August) that the closure will only affect this area’s gaming and dining outlets. The rest of SkyCity Auckland will be open.
This case goes back to 2022, when a SkyCity Auckland client filed a complaint at the DIA. The case was a result of a SkyCity Auckland customer’s complaint to the DIA in February 2022.
After analyzing the case, there were concerns raised about detecting the continuous play in the casino. In September 2023, the Secretary of Internal Affairs applied to suspend temporarily SCML’s license as a SkyCity casino subsidiary.
Last month, a 5-day period of closure was decided. This is expected to hit underlying group EBITDA in SkyCity’s FY2025 earnings, with a total loss of approximately NZ$5.0m (PS2.3m/EUR2.8m/$3.0m).
SkyCity CEO says we failed to meet standard
Jason Walbridge, CEO of SkyCity, reiterated the fact that SkyCity accepts their failures. The operator continues to strive to improve their systems, Walbridge said.
Walbridge stated, “The closing is the result from SkyCity’s failures for which we accept responsibility.” Walbridge said, “We did not meet the standard expected from us in this instance.
SkyCity Group has made great progress in recent years to improve the way it manages risk, but still there’s work to be done. Our efforts are underway and we remain dedicated to prioritizing the care of customers.
We understand that holding a licence for a casino comes with numerous responsibilities.
SkyCity has taken steps to reduce future risk.
SkyCity launched in 2021 a multiyear programme of transformation to improve risk management. It includes hiring new directors who have specialist experience in risk management and creating a risk and compliance panel.
A group chief risk officer was also appointed. Other changes included increased internal audit capability and scrutiny of external audits. The company has committed to implementing mandatory carding at New Zealand casinos by the middle of 2025. This will also be implemented in Australia.
SkyCity announced in April a new leadership team, with the experienced Walbridge taking over as CEO. Walbridge replaced Michael Ahearne who left the company recently.
The DIA noted these efforts during settlement discussions last month.
