The New Zealand High Court has officially imposed a NZ$4.16 million (£1.96 million/€2.34 million/US$2.61 million) fine on SkyCity Entertainment Group for breaching anti-money laundering and countering financing of terrorism (AML/CTF) obligations in the country. This penalty was announced by SkyCity in June as part of a settlement with New Zealand’s Department of Internal Affairs (DIA), and the High Court has now finalized the fine, giving SkyCity 15 working days to pay in full.
The legal action against SkyCity and its SkyCity Casino Management (SCML) subsidiary was initiated by the DIA in February, following alleged non-compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. The case was brought to light by a complaint from a SkyCity Auckland customer in February 2022, raising concerns about responsible gambling rules not being followed between August 2017 and February 2021.
During the investigation, the DIA found issues regarding continuous play at the casino, prompting SkyCity to acknowledge failings in AML and CTF. However, the operator mentioned an enhancement program implemented since late 2021 to address these shortcomings. In addition to the fine, an agreement was made for SkyCity to temporarily close its Auckland casino for five days, with the affected gaming area and food and beverage outlets shutting down from 9-13 September.
The finalization of the fine marks the official conclusion of the DIA’s civil proceedings against SkyCity. CEO Jason Walbridge commented on the matter, stating that the operator is focused on moving forward and enhancing its AML and CTF measures. He emphasized the importance of combating money laundering and terrorism financing as a casino operator, expressing a commitment to meeting regulatory obligations and community expectations.
Apart from the case in New Zealand, SkyCity has also faced penalties in Australia for similar AML and CTF failings. In May, the operator agreed to pay a AU$67.0 million civil penalty to the Australian Transaction Reports and Analysis Centre (Austrac) for historical issues at its Adelaide-based casino. The Federal Court of Australia approved the agreement in June, directing SkyCity to also cover Austrac’s costs of $3.0 million.
SkyCity continues to work towards improving its compliance with AML and CTF regulations in both New Zealand and Australia, recognizing the importance of upholding ethical standards in the gambling industry.
