On 16 February, legal proceedings will be filed against SkyCity regarding alleged non-compliance with the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act 2009. If the claim is accepted, SCML may face a civil penalty with a maximum liability of NZ$8.0m.
These pending proceedings against SkyCity follow a review of SCML’s compliance. SCML holds the license for operating SkyCity land-based casinos in Auckland, Hamilton, and Queensland. The draft pleadings highlight five significant compliance issues related to the Act, mostly referring to historical matters. Some incidents were already self-reported to the department.
However, since late 2021, SkyCity has been implementing an anti-money laundering and counter-terrorism financing enhancement program to address compliance systems and correct historical shortcomings. This program includes investments in people and technology, as well as reviews of processes and systems for improvement.
SkyCity expressed disappointment over its non-compliance and committed to working with the department to rectify any issues. It intends to engage constructively with the department regarding the proposed proceedings. As the matter will be before the court, SkyCity refrains from commenting further at this stage.
These proceedings add to a challenging year for SkyCity, including the potential suspension of its casino license in New Zealand. Additionally, federal proceedings were launched in Australia against SkyCity Adelaide for anti-money laundering failings. SkyCity has been conducting a review of its counter-terrorism financing and anti-money laundering programs as ordered by the gaming regulator for South Australia. In anticipation of a civil penalty, SkyCity made a provision of AU$45m. In October, SkyCity announced the departure of its chief executive, Michael Ahearne, in March. He cited personal reasons and a desire to spend more time with his family.
Furthermore, in December, SkyCity warned that its adjusted EBITDA may decline in the 2024 financial year, despite previously expecting an increase. Factors contributing to this revised guidance include a reduction in electronic gaming machine revenue in New Zealand and a weaker-than-expected performance in Adelaide, Australia.
