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Home / Business / Personal Finance / Investment

SkyCity gambler who lost $1m+ ‘not at fault’: support group

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
19 Jul, 2024 03:00 AM3 mins to read

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SkyCity casino in Auckland. Photo / Dean Purcell

SkyCity casino in Auckland. Photo / Dean Purcell

The SkyCity gamer who lost more than $1 million is not to blame for that, the Problem Gambling Foundation says, adding that the company’s voluntary five-day closure was a consequence of its failure to prevent harm.

“Let’s be very clear. The person who is gambling is not at fault,” the foundation said of the man who between 2017 and 2021 went to the Auckland casino and complained host responsibility was breached due to his long play.

“They are going to the casino to engage in a legal form of entertainment, often unaware of the risks associated with gambling. It’s the gambling products that are harmful and gambling operators have a duty of care to their patrons or customers and a legal requirement to ensure they are not harmed,” the foundation said.

SkyCity and the Department of Internal Affairs yesterday announced the Auckland casino would shut for five consecutive days this year, although no dates have been settled yet.

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Chief operating officer Callum Mallett said: “The team’s gutted. On this occasion and on a number of occasions, we failed with this customer and for that we are deeply sorry and being rightfully held to account as a business. This is a disappointing day for us.

“We don’t turn up to work each day to cause harm. We turn up to give people a fun, exciting entertainment offering and we’re sorry that we failed in this instance.”

Vicki Scott, Internal Affairs’ gambling director, told RNZ’s Checkpoint yesterday that the longest time the complainant spent continuously at the casino’s slot machines was “in excess of nine hours”. The person spent more than $1m at the casino, she said.

“That had a real impact on this person and their life. This is just an example of the sort of harm that can be suffered by customers when these important obligations and systems fail,” Scott said.

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The foundation said SkyCity must do more.

Pokie machines inside SkyCity Entertainment Group's Auckland casino. Photo / NZME
Pokie machines inside SkyCity Entertainment Group's Auckland casino. Photo / NZME

“It’s not up to the person who is gambling to gamble responsibly. It’s up to the operators to provide robust host responsibility measures to protect people from the harmful products they are providing,” it said.

SkyCity’s harm reduction measures were “not silver bullets” and never would be.

The foundation also questioned the gaming giant’s plans for a new card system that could largely replace cash, although more details are yet to be revealed and it won’t be introduced till next July.

“Mandatory carded play is also touted as a harm prevention measure by the gambling industry but evidence supporting the effectiveness is unclear. We don’t know for certain how this system will work and if this will be truly effective in minimising harm for patrons,” the foundation said.

The foundation backed Internal Affairs’ action in how it responded to the complaint against SkyCity from the gambler.

“It is great to see the gambling regulator sending a very clear signal to casinos and other gambling operators, that if they don’t uphold their host responsibly requirements under the Gambling Act, there are consequences and for SkyCity, that’s five days closure with an anticipated financial hit of $5 million,” it said.

Jarden analyst Adrian Allbon said yesterday Internal Affairs had previously applied for a suspension of up to 10 days.

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SkyCity shares are trading at around $1.53. The company’s annual result for the June 30, 2024 year is due on August 22.

Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.


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