New Zealand’s SkyCity Entertainment Group has formally rejected allegations brought against it in a proposed US-funded class action lawsuit concerning player losses sustained via its Malta-operated SkyCity Online casino, which is available to players in New Zealand and further afield.
The legal action, initiated this week, names multiple entities including SkyCity Entertainment Group, SkyCity Auckland Holdings, and Silvereye Entertainment.
The claim seeks to determine the legality of the online gaming activities conducted via the SkyCity Online platform, via its offshore Malta licence.
Plaintiffs are also looking to proceed with a funded class action that covers alleged wagering losses from February 2020 through to February 2026.
In its statement, SkyCity unequivocally denies any liability arising from the claims and confirmed it will actively defend the proceedings. The claim has been attributed to a US-backed group targeting the Malta-based platform.
Overseas operations
SkyCity clarifies that its online casino operations are conducted through Silvereye Entertainment. This is an overseas subsidiary that has functioned under a Malta Gaming Authority (MGA) licence framework since 2021.
The online platform is supplied and managed via Gaming Innovation Group and other third parties, rather than directly by SkyCity itself. The legal action aims to challenge the lawfulness of Silvereye’s online gaming activities on behalf of SkyCity Online.
The company points out that the Maltese regulatory regime governs Silvereye’s operations and that the utilisation of third-party technology providers is a standard industry practice.
The claimants’ application for class-action leave could open the door for compensation claims spanning six years of gameplay. They seek restitution for losses incurred through the platform, raising pivotal jurisdictional and licensing questions.
SkyCity has emphasised that the legal proceedings represent a test of the lawfulness of its online gambling operations, rather than an admission of wrongdoing.
This is not the first time that SkyCity has faced regulatory scrutiny. Earlier this year, the operator was permitted to retain its licence to run its Adelaide casino. This was following an independent suitability review.
New Zealand advances iGaming regulations
Today, iGaming in New Zealand is not licensed, although a process to legalise and establish an onshore framework is in motion.
Last week, the government reported the licensing process would commence in July. It will establish a three-stage system that will ultimately award up to 15 operator licences.
The move aims to bring a market historically served largely by offshore operators under domestic oversight. This is amid estimates that New Zealand players currently spend more than NZ$750 million annually on foreign online casinos.
Global operator Entain last week indicated it may pursue up to three of the available licences as part of its long-term growth strategy in the country. The market is expected to go live in 2027.
Original article: https://igamingbusiness.com/legal-compliance/legal/skycity-faces-class-action-over-malta-based-online-casino-brand/
