A class action lawsuit has been filed against New Zealand’s SkyCity Entertainment Group, challenging the legality of its online gaming operations. The proceedings, brought by an undisclosed U.S.-based entity, target SkyCity’s Malta-based online gambling platform, SkyCity Online Casino, which has been running since February 2020.

The lawsuit focuses on gambling losses incurred by New Zealand players who used the online platform between 2020 and 2026. The plaintiffs are seeking to determine whether SkyCity’s operation of its online casino from Malta, which services New Zealand residents, complies with New Zealand’s gambling laws.

Legal Grounds for the Lawsuit

SkyCity’s Malta subsidiary, SkyCity Online, operates under the supervision of Silvereye Entertainment Limited, a company based in Malta and licensed by the Malta Gaming Authority. Despite New Zealand’s Gambling Act 2003 prohibiting local companies from offering online gaming services to New Zealand residents, SkyCity has circumvented this by establishing its operation offshore.

SkyCity’s rationale for launching the Malta-based platform was to tap into the New Zealand market, where it had seen a decline in potential earnings due to the rise of overseas online gambling platforms. The company believed this model allowed it to operate legally while adhering to the country’s tax regulations and host responsibility rules, which apply specifically to New Zealand-based operators.

However, the class action group disputes this arrangement, asserting that SkyCity’s operations are illegal under the country’s current gambling laws. As a result, they are seeking compensation for losses incurred by New Zealand gamblers on SkyCity’s online platform.

SkyCity, in a market statement, rejected any liability regarding the class action claims and confirmed its intention to vigorously defend the case. As reported by RNZ, the company stated that it would not make further comments while it continues to assess the legal proceedings. SkyCity has consistently maintained that its operations comply with relevant laws, especially given the complexities of the international gambling market.

The legal action emerges amid ongoing discussions within New Zealand regarding the regulation of online gambling. The government has been exploring the introduction of a regulated online casino market and is planning to issue up to 15 licenses by the end of 2026. This regulatory push could alter the landscape for operators like SkyCity, as the government aims to create a clearer framework for online gaming in the country.

The Role of Silvereye Entertainment

The SkyCity Online platform is operated by Silvereye Entertainment, which holds a license from the Malta Gaming Authority (MGA) under license MGA/B2C/880/2021. This company offers a range of online games, including pokies, table games, and live casino options, catering to New Zealand players via the SkyCity Online Casino website. Silvereye’s operational model allows the casino to bypass certain New Zealand regulations by operating outside the country.

SkyCity has faced scrutiny regarding its offshore operations before. The complexity of the legal situation is heightened by New Zealand’s regulatory loopholes, where it is not illegal for residents to sign up for and participate in gambling activities on offshore sites, even though local operators are restricted from offering such services.

While the class action lawsuit is still in its early stages, it may have significant implications for the future of online gambling in New Zealand. The outcome of the case could set a precedent for the legality of offshore gambling platforms catering to New Zealand residents. As the country moves toward establishing its own online casino regulations, the case against SkyCity highlights the tensions between the evolving legal framework and the international nature of modern gambling.

For now, SkyCity will continue to defend its position in the courts, maintaining that it has complied with the laws governing its operations. The outcome of this case may prompt broader changes in how New Zealand addresses offshore gambling and the regulation of online gaming in general.