New Zealand’s SkyCity Entertainment Group said Friday it has received notice of proceedings against the company, SkyCity Auckland Holdings Limited and a third-party entity called Silvereye Entertainment Limited seeking to test the lawfulness of the SkyCity Online Casino online gaming operations run by Silvereye on behalf of SkyCity.
Silvereye is based in Malta and licensed by the Malta Gaming Authority.
According to SkyCity, the proceedings include an application for leave to bring the proceedings as a funded class action in respect of gambling monies lost to SkyCity Online between February 2020 and February 2026. Local media outlets have suggested that the proceedings have been brought by an unidentified US entity.
SkyCity stated that it “denies any such liability and will actively defend the proceedings”
The action relates to SkyCity’s online gaming operations, launched out of Malta in 2019 but New Zealand-facing.
Under New Zealand’s Gambling Act 2003, it is illegal for any company based in New Zealand to offer online gaming services to New Zealanders, with the exception of TAB NZ for racing and sports betting and the New Zealand Lotteries.
However, it is not a crime for New Zealanders to sign up to and play on offshore sites – creating a loophole for offshore operators. It is via this loophole that SkyCity launched its SkyCity Online Casino.
Ironically, the proceedings come at a time when the New Zealand government is in the process of developing a regulated online casino industry, planning to offer up to 15 licenses by the end of this year. The licensing process is expected to begin in July.
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