The suspension that SkyCity Entertainment Group is looking at has to do with an application by the Secretary of the Department of Internal Affairs, which specifically addresses a case from February 2022 and has to do with a complaint from a customer who gambled at the SkyCity Auckland property between August 2017 and February 2021.

Several Casinos Targeted in New Zealand

According to the complaint and application, SkyCity Casino Management Limited, the subsidiary tasked with running the SkyCity Hamilton, SkyCity Queenstown, and SkyCity Auckland, did not comply in full with the requirements under its responsible gambling play – the SkyCity Auckland Host Responsibility Program.

The venue is accused of having allowed the player to gamble without regard for their source of income. The Host Responsibility Program is designed to prevent such incidences in such instances, but it has not been used effectively, the application stated.

The Commission will now have to decide whether it would move forward with a casino license suspension, but the company seems confident that the suspension would not last more than 10 days. SkyCity Entertainment Group has clarified that its operations at SkyCity Adelaide, the Australian property, would not be impacted.

Before a suspension may come about, however, the Gambling Commission may want to investigate further and summon all parties involved, which is usually a lengthy process that takes several months at the very least. As to SkyCity, the company has expressed its readiness to collaborate with authorities.

Possible Suspension Still a Long Way Off

“SkyCity will fully cooperate with the Secretary in relation to the application and process,” the company said.

“SkyCity is committed to maintaining the highest standards of host responsibility best practice, with priority given to minimizing the impacts associated with problem gambling as an area of primary focus,” the company added, assuring that it was determined to pursue a course of action that would allow it to take better care of its patrons.

Meanwhile, the company has also faced pressure in Australia where the country’s financial regulator, AUSTRAC, opened civil penalty proceedings against the casino in December. The casino is also undergoing a thorough review of its AML and CTF policies as part of a broader sweep in Australia attempting to determine whether operators are complying with gambling laws.

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Adelaide’s casino operator, SkyCity, has taken a decisive step by appointing a forensic investigations firm to conduct a comprehensive review of the company’s adherence to anti-money laundering regulations.

The move comes as part of the casino’s commitment to ensuring strict compliance with anti-money laundering and counter-terrorism financing laws.

Kroll Australia has been approved as the ‘independent monitor’ for this crucial task by South Australia’s liquor and gambling commissioner. This decision follows a directive issued by the commissioner back in May.

Kroll is a globally recognised provider of governance, risk, and compliance services, operating in more than 30 countries. It is noteworthy that Kroll is also currently overseeing the operations of Crown’s Sydney casino, a responsibility that has gained heightened attention given the increased scrutiny of Australia’s casino industry.

While an independent investigation into SkyCity Adelaide’s operations by the commissioner is currently in limbo due to pending Federal Court proceedings involving financial crime watchdog AUSTRAC and the casino operator, this move underlines SkyCity’s proactive approach towards ensuring regulatory compliance.

Commissioner Dini Soulio expressed confidence in Kroll Australia’s capabilities, both domestically and internationally, in similar matters.

“I approved the appointment of Kroll, after being satisfied that they would be sufficiently independent and have the expertise to effectively monitor SkyCity Adelaide to ensure they are meeting these very important requirements,” he said, further emphasising that Kroll’s team comprises individuals with experience at the national regulator, AUSTRAC, in addition to their expertise in fraud and risk management. This diverse experience positions them well to ensure that casinos fulfil their regulatory obligations.

As the sole casino operator in South Australia, SkyCity Adelaide bears a significant responsibility to uphold anti-money laundering and counter-terrorism funding measures, as well as policies to mitigate gambling-related harm, in alignment with regulatory mandates. Commissioner Soulio pointed out that SkyCity Adelaide’s role extends to serving the broader South Australian community and ensuring these regulatory requirements are met.

Kroll Australia’s role will involve a meticulous review and monitoring of SkyCity Adelaide’s enhanced anti-money laundering and counter-terrorism financing programs. Their findings will be reported back to the commissioner, contributing to a transparent evaluation of the casino’s compliance efforts.

SkyCity responded to this development by affirming their commitment to maintaining a proactive and cooperative stance in collaboration with both the commissioner and Kroll Australia.

In terms of financial performance, SkyCity reported a substantial 44.9% surge in full-year revenue to NZ$926.2 million ($854.9 million) recently. This growth was attributed to a resilient rebound and recovery in trading. However, the net profit of NZ$8 million ($7.4 million) was impacted by a NZ$49 million ($45 million) provision earmarked for potential penalties arising from legal proceedings with AUSTRAC, along with a NZ$49.7 million ($45.6 million) impairment of its Adelaide casino license.

Despite these challenges, SkyCity’s normalized EBITDA reached NZ$310.3 million, at the higher end of its previously adjusted guidance range. The adjustment was made in May due to the industry-wide focus on money laundering, resulting in increased legal and compliance costs.

On the stock market, SkyCity shares experienced a 1.4% decline, trading at $2.09 on Friday.

More gambling news

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In July 2022, the Honourable Brian Martin, an officer of the Order of Australia and King’s Counsel, was put in charge of reviewing SkyCity Adelaide’s suitability to preserve its monopoly casino license.  

Now, commissioner Martin has sent a direct notice to SkyAdelaide using Section 10 part of the Gambling Administration Act 2019, asking them to name a qualified independent suitability expert. 

Commissioner Martin’s Review, Put on Hold

The commissioner’s independent review initiated last July under section 22(2) of the Casino Act 1997 was also aimed at determining whether SkyCity should continue its collaboration with SkyCity Adelaide Pty Limited. 

On February 6, the Consumer and Business Services, which is South Australia’s gaming regulator, informed SkyCity Entertainment Group Limited that Martin’s review was put on hold. 

This was due to the pending resolution of the civil penalty proceedings that had been filed by the Australian Transaction Reports and Analysis Center against the premiere casino located on the banks of the River Torrens in December 2022. 

After closely considering his next action while his review was on hold, commissioner Martin finally sent a notice to SkyAdelaide, urging them to appoint a qualified independent suitability expert. 

The expert would have to receive the approval of the same South Australian Liquor and Gambling Commissioner.

What Will the Independent Expert Do?

The independent expert will be responsible for revising and amending SkyCity Adelaide’s anti-money laundering and counter-terrorism financing programs while supervising the implementation of the responsibility enhancement programs. 

The appointed expert will also need to conduct similar procedures related to the minimization of gambling harm and report back to the commissioner to inform him of the latest updates.

According to a statement issued by SkyCity, the decision should offer an “independent perspective” of the casino’s AML and counter-terrorism financing programs while adding an additional layer of assurance.

The Auckland-based group, one of Australasia’s top entertainment and gaming companies, also stated they would keep working with Consumer and Business Services and comply with any additional information and document requests.

At the moment, SkyCity Adelaide represents Adelaide’s 10^th largest employer, injecting approximately $30 million into the state on a yearly basis each with the help of its staff that consists of more than 1,000 members. 

Since it was built almost four decades ago, SkyCity Adelaide has continued to go through essential upgrades to guarantee it remains “the most exciting entertainment venue in Adelaide.”

The publicly-listed SkyCity Entertainment Group currently employs more than 3,400 people in Australia and New Zealand. The group is also the owner and operator of a series of casinos in Queenstown, Hamilton, and Auckland.

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The New Zealand gaming and entertainment company, SkyCity Entertainment Group, announced a senior-level appointment. On Friday, the company confirmed it has selected human resources expert and proven leader, Shaun Philp, for the role of chief people and culture officer.

Although the appointment came this week, Philp will assume the new role starting on September 4, 2023. The company also explained that the senior-level appointment is subject to securing the relevant regulatory approvals.

Between March 27, 2023, and September 4, 2023, SkyCity’s general manager of employee services – people and culture Auckland, Greg McNair, will hold the role of acting chief people and culture officer. In other words, McNair will fill in the interim role until Philp’s appointment comes into effect.

“Pursuant to NZX Listing Rule 3.20.1(a), SkyCity Entertainment Group Limited is pleased to announce the appointment of Shaun Philp to the role of Chief People and Culture Officer effective from September 4, 2023, subject to obtaining all necessary regulatory approvals,“

reads a statement released by SkyCity

Philp Makes a Fine Addition to SkyCity’s Team

Overall, Philp has accumulated significant experience within the human resources vertical prior to his appointment with SkyCity. He provided strategic guidance and advice within different cultural transformations, while at the same time contributing to the implementation of successful business strategies as a part of leading financial services and telecommunications companies. This makes him an invaluable addition to SkyCity’s team of experts.

Before SkyCity, Philp held the role of chief people officer at Chorus New Zealand Limited. He held that position since 2017. His professional background includes senior-level roles with AMP New Zealand as general manager of human resources as well as other leading roles with companies in New Zealand and Australia.

The latest announcement comes after only recently, SkyCity appointed David Attenborough to the role of a non-executive director. The former Tabcorp managing director and chief executive officer delivered an extensive experience to the company after being a part of the gaming and hospitality sector for decades.

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