SkyCity Entertainment Group Faces Multi-Million Dollar Loss Amid Auckland Casino Closure
SkyCity Entertainment Group has announced a voluntary five-day closure of its Auckland casino due to a significant oversight failure in its host responsibilities. This decision, unprecedented in New Zealand’s gaming history, is expected to cost the company approximately NZ $5 million (US $3 million) in lost revenue, according to the New Zealand Herald. The temporary shutdown marks the first voluntary closure of a casino in New Zealand.
Negotiated Settlement with Regulators
The decision to temporarily close the casino floor resulted from negotiations between SkyCity and the Department of Internal Affairs (DIA), the government body overseeing gambling regulations in New Zealand. The closure agreement awaits approval from the Gambling Commission. The negotiations followed charges filed by the DIA against SkyCity in February for failing to adhere to responsible gambling practices.
The potential penalties included a 10-day forced closure of SkyCity’s casinos in Auckland, Hamilton, and Queenstown, alongside regulatory fines potentially amounting to NZ $8 million. However, SkyCity opted for a voluntary closure to mitigate further repercussions.
Details of the Incident
The oversight failure centers around a single casino guest who engaged in continuous gambling at the Auckland casino between 2017 and 2021. The guest’s extended gambling sessions occurred on 23 separate occasions, during which the casino’s monitoring systems failed to detect and address the continuous play. The guest later lodged a complaint about the debt accumulated from his gambling activity, arguing that SkyCity breached responsible gambling protocols.
Technological Glitch Identified
SkyCity’s internal investigation revealed that the oversight failure resulted from a technological glitch caused by design errors in the casino’s monitoring systems. These errors prevented the detection of continuous play, which should have triggered staff intervention. The company has since rectified the issue and issued a public apology.
“The resolution agreement is an unprecedented result. This is the first voluntary closure of a casino and is the longest suspension of operations in a casino under the Gambling Act,” stated Vicki Scott, DIA’s director of gambling. “Gambling has a real potential to cause harm to customers, their whānau [extended family group], and their communities.”
Implications and Future Steps
SkyCity’s decision to voluntarily close its Auckland casino highlights the company’s commitment to addressing regulatory concerns and reinforcing responsible gambling practices. The exact dates for the closure have not been finalized, but it is expected to occur before the end of 2024, likely on weekdays to minimize disruption.
SkyCity Entertainment Group owns and operates five casinos across New Zealand and Australia. The company continues to work closely with regulatory bodies to ensure compliance with gambling regulations and to prevent similar incidents in the future.
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