SkyCity Entangled in Legal Battle Over Compliance Issues
SkyCity Entertainment Group is currently facing legal actions initiated by Internal Affairs due to alleged breaches in the Anti-Money Laundering and Countering Financing of Terrorism Act.
The legal proceedings are set against SkyCity’s operations in New Zealand, specifically targeting its Auckland, Hamilton, and Queenstown casinos, and are scheduled to be addressed in the High Court this coming Friday.
Recent Settlement and Ongoing Investigations
This legal challenge is not isolated; it follows a recent agreement with Australian authorities where SkyCity consented to a substantial $75 million penalty related to its Adelaide casino’s compliance failures.
Additionally, the New Zealand Gambling Commission is conducting its investigation into alleged breaches of host responsibility by SkyCity, adding layers to the company’s compliance predicaments.
SkyCity’s Response and Corrective Measures
In light of these serious allegations, SkyCity has acknowledged the compliance issues, attributing many to historical practices. The company has embarked on a comprehensive overhaul of its compliance frameworks, leveraging advanced technology and expanding its compliance teams to prevent future lapses.
SkyCity estimates its potential financial liability from these claims to be around $8 million. Despite the financial and reputational risks, SkyCity remains committed to rectifying the identified issues and enhancing its compliance mechanisms to prevent recurrence.
Our Comment on the Article
The legal challenges faced by SkyCity serve as a stark reminder of the critical importance of rigorous compliance within the iGaming industry.
This case not only impacts SkyCity’s operational and financial standing but also sets a precedent for industry-wide practices, emphasizing the need for continuous vigilance and adherence to regulatory standards.
