SkyCity to Force Carded Play in Its New Zealand Casinos
SkyCity Entertainment Group has announced it will introduce mandatory carded play at its casinos in New Zealand, with the rollout set to begin in July 2025 across its Auckland, Hamilton, and Queenstown properties. The initiative is part of the company's broader transformation program, aimed at strengthening compliance with regulatory standards and enhancing responsible gaming practices. The move will later extend to SkyCity Adelaide in Australia in 2026.
LISTEN TO THIS ARTICLE:The decision aligns with similar measures undertaken by other major operators in the region, including Crown Resorts and Star Entertainment Group. These companies implemented mandatory carded play following regulatory reviews in Australia that identified weaknesses in anti-money laundering (AML) and responsible gambling protocols. SkyCity's adoption of carded play is seen as a proactive measure to address these concerns and align its operations with evolving industry standards.
Related: SkyCity Faces Fine of Tens of Millions over AML Failures at Adelaide CasinoThe introduction of carded play will require all customers to register and use a SkyCity-issued card linked to their identity in order to access gaming facilities. This system will enable patrons to track their gambling activity, including play duration and spending patterns, and allow for interventions when necessary. SkyCity CEO Jason Walbridge stated that this initiative represents a significant advancement in customer care and host responsibility, emphasizing that it will provide players with greater awareness of their gaming habits.
SkyCity's commitment to enhanced compliance measures follows previous regulatory penalties related to AML deficiencies. In 2023, the company reached a settlement with Australian financial crime watchdog AUSTRAC, agreeing to pay AU$67 million (US$42.5 million) for historical failures in AML compliance. A similar case in New Zealand resulted in a NZ$4.2 million (US$2.4 million) settlement with the country's Department of Internal Affairs.
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SkyCity Sees Revenue Decline in Q4 2024
The announcement of mandatory carded play came as SkyCity reported its interim financial results, revealing a 22% year-on-year decline in Group EBITDA to NZ$113 million (US$64.6 million) for the six-month period ending 31 December 2024. The decline was attributed to reduced customer spending, increased regulatory costs, and the company's ongoing risk transformation program. Despite strong visitor numbers, overall revenue dropped by 5% due to lower per-visit spending.
The company's flagship property, SkyCity Auckland, experienced disruptions in gaming revenue due to a five-day closure of operations, weaker market conditions, and shifts in the customer base. In contrast, SkyCity Adelaide saw a 10% increase in visitation, which contributed to higher revenue, though this was counterbalanced by increased costs associated with the company's long-term transformation efforts.
SkyCity's financial performance was further impacted by a NZ$32 million (US$18.3 million) settlement with the South Australian government. The settlement pertained to outstanding interest owed on gaming duty at its Adelaide property, adding to the financial challenges faced during the period.
Despite these financial pressures, SkyCity remains focused on its long-term growth strategy. The company has conducted a comprehensive review of its asset portfolio and developed a five-year master plan. This plan involves monetizing select assets to reduce debt, resuming dividend payments to shareholders, and investing in future business opportunities.
SkyCity also reaffirmed its commitment to the tourism sector, highlighting the upcoming opening of the New Zealand International Convention Centre (NZICC) in February 2026 as a key milestone. The company views the NZICC as a world-class venue that will attract international visitors and contribute to the broader economic and tourism landscape in New Zealand and Australia.
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