SkyCity could face casino licence suspension after customer complaint
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The Department of Internal Affairs (DIA) is lodging an application for SkyCity's casino operator's licence to be temporarily suspended in the wake of a complaint from a customer.
A suspension "in the range of 10 days" is sought, a statement from SkyCity Entertainment Group LTD on NZX said this morning.
It would affect the company's flagship casino in Auckland as well as SkyCity Hamilton and SkyCity Queenstown.
The Gambling Commission will rule on the application and the length of any suspension.
"A decision may not be forthcoming for a number of months," the statement read.
SkyCity's announcement before trading opened this morning prompted a dramatic 10% share price fall from $2.34 at open of trading to $2.10 just five minutes later at 10.05am.
It comes after a complaint in February last year. The complainant — described as a "former customer" — gambled at SkyCity's Auckland casino between August 2017 and February 2021.
The DIA's secretary alleges in the application that SkyCity "did not comply with requirements in its SkyCity Auckland Host Responsibility Programme relating to detection of incidences of continuous play by the customer".
"SkyCity will fully cooperate with the [DIA] Secretary in relation to the application and process," the statement said.
"Given that the application is before the Commission it would be inappropriate for SkyCity to comment further on the application and allegations at this stage.
"Should the Commission determine to grant an order to suspend SCML's [SkyCity Casino Management Limited] casino operator's licence, this would not impact SkyCity's non-gaming operations, including its hotels and restaurants."
John Sneyd, general manager of regulatory services at the DIA, said in a statement: "Te Tari Taiwhenua, Department of Internal Affairs, can confirm it has recently completed an investigation into SkyCity's gambling harm minimisation practices."
"The Secretary believes SkyCity has breached important harm-minimisation obligations," he said.
Both the DIA and SkyCity will make submissions to the Gambling Commission ahead of the decision, Sneyd added.
"DIA takes gambling harm minimisation seriously," he said. "DIA has a responsibility to keep Aotearoa safe by ensuring gambling in New Zealand is run by trusted operators and that harm to gamblers is minimised, including problem gambling."
The DIA urged anyone who has a gambling problem, anyone who knows someone with a gambling problem, or anyone who's worried they may be developing a gambling problem, to consider talking to the Gambling Helpline or the Problem Gambling Foundation.
It comes on the first day of Gambling Harm Awareness Week.
