SkyCity Entertainment Group will temporarily close its Auckland casino for five days in 2024, marking a significant event in New Zealand’s gambling sector. This decision comes after the company admitted to breaches in host responsibility requirements and agreed to a settlement with the Department of Internal Affairs (DIA). The closure represents the first voluntary casino shutdown in the country and aims to address issues linked to the casino’s harm minimization obligations.

The issue came to light following a complaint by a customer who frequented the SkyCity Auckland casino from 2017 to 2021. Investigations by DIA revealed that the casino failed to adequately monitor and intervene in instances of continuous gambling by the customer, leading to a breach of its Host Responsibility Programme (HRP). Specifically, the casino’s technology failed to detect continuous play, and there was insufficient staff oversight to address the behavior promptly, according to an official statement released by the DIA.

As part of the settlement, SkyCity has not only agreed to the closure but also to 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, which will ensure that no gaming activity can occur without verified identification.

A Costly Mistake

The closure is estimated to cost SkyCity around NZ$5 million in lost revenue, highlighting the financial impact of regulatory non-compliance. Additionally, this action is contingent upon the Gambling Commission’s approval to withdraw the ongoing suspension proceedings against the casino’s operator’s license.

This resolution follows rigorous discussions and is part of a broader effort by New Zealand regulators to ensure that gambling entities adhere strictly to legal and ethical standards designed to protect gamblers. Vicki Scott, Director of Gambling at DIA, emphasized the importance of casinos fulfilling their harm minimization duties, stating that gambling can significantly impact not only individuals but also their families and communities.

The temporary shutdown serves as a precedent within the industry, sending a clear message to other operators about the serious consequences of neglecting host responsibility obligations. The Problem Gambling Foundation has praised the decision, noting that it underscores the need for all gambling operators to comply with their legal responsibilities or face stringent actions.

In a statement cited by Radio New Zealand, SkyCity’s Chief Operating Officer for New Zealand, Callum Mallett, expressed regret over the failures and reiterated the company’s commitment to enhancing its risk management systems and continuing efforts to protect customers from gambling harm.