Under the agreement with the secretary for Internal Affairs, SkyCity’s Auckland casino will close its gaming floors for five consecutive days before the end of this calendar year.
The impact of the casino closure to SkyCity’s bottom line is expected to be $5 million.
New Zealand’s Department of Internal Affairs made an application to suspend the casino operator’s licence after a complaint relating to continuous play of a patron between 2017 and 2021.
Other aspects of the settlement agreement include admission of fault by SkyCity around elements of its Host Responsibly Programme in Auckland and a formal apology, both of which have already been offered by SkyCity.
“There is still considerable work required and underway to improve our risk systems, including our approach to mitigating financial crime and problem gambling,” said SkyCity’s chair, Julian Cook.
“It is clear that historically SkyCity’s focus, resources and investment have fallen short of what was required of the business.
“This is not acceptable and, as part of meeting our regulatory obligations and wider social licence, we are committed to fully addressing this.”
SkyCity began what Cook refers to as a “multi-year transformation programme to strengthen how we manage risk” in 2021.
The agreement between SkyCity and the Department of Internal Affairs remains subject to the approval of the New Zealand Gambling Commission.
Alongside its casino complex, SkyCity also owns the New Zealand International Convention Centre (NZICC), set to open next year, and the adjoining Horizon Hotel, which is opening next month.
