SkyCity Faces Class Action Lawsuit Over Online Gambling Platform

A class action lawsuit has been filed against SkyCity Entertainment Group, the New Zealand casino operator, by an unnamed United States-funded group. The suit centers on the legality of SkyCity’s online gambling platform, SkyCity Online, which operates out of Malta and has been running since February 2020. The legal action seeks to recover gambling losses incurred by New Zealand residents between February 2020 and February 2026.

SkyCity disclosed the proceedings in a market statement on Friday, March 6, 2026, characterizing the lawsuit as an attempt to “test the lawfulness of the online gaming operations” managed by Silvereye Entertainment Limited on behalf of its Malta subsidiary. Radio New Zealand reported that the group is seeking refunds for all New Zealand gamblers who lost money on the platform.

The Malta Strategy and Regulatory Scrutiny

The lawsuit throws a spotlight on SkyCity’s strategic decision to establish its online presence in Malta. The company initially set up the Malta operation to circumvent restrictions and competition from overseas online gambling operators actively targeting New Zealand customers. As RNZ detailed in February 2022, SkyCity aimed to legally operate under its brand while adhering to New Zealand’s tax regulations and responsible gambling rules. The core of the class action’s argument, however, is that the Malta-based platform was, and remains, illegal.

Silvereye Entertainment Limited, the operator of SkyCity Online, is licensed by the Malta Gaming Authority. AGBrief reported that the proceedings specifically relate to the operations of Silvereye.

Financial Implications for SkyCity

While the precise financial exposure for SkyCity remains unclear, the potential for significant refunds to New Zealand gamblers is substantial. The claim period covers nearly six years of online gambling activity. SkyCity has stated it intends to “actively defend” the proceedings and currently denies any liability. The company is still reviewing the legal action and has declined to provide further comment at this time.

The timing of the lawsuit is noteworthy. SkyCity recently reported first-half results showing the impact of mandatory carded play and increased anti-money laundering (AML) costs. Asiam Gaming Brief highlighted this in its coverage, noting that these factors were already putting pressure on the company’s bottom line. The added financial burden of defending a class action, and potentially settling claims, could further strain SkyCity’s resources.

Impact on New Zealand Gamblers

The class action directly affects New Zealand residents who participated in online gambling through SkyCity Online between February 2020 and February 2026. If successful, the lawsuit could result in the recovery of funds lost on the platform. However, the process of claiming refunds, should the class action be certified and succeed, is likely to be complex and could take considerable time.

The case as well raises broader questions about the regulation of online gambling and the protection of New Zealand consumers. The fact that SkyCity sought to operate its online platform offshore highlights the challenges of enforcing domestic laws in the digital age. The outcome of this lawsuit could influence future regulatory approaches to online gambling in New Zealand.

The Class Action Process and Legal Hurdles

The unnamed US-funded group has applied for leave to proceed with the lawsuit as a funded class action. This means that a third-party funder is providing financial support for the litigation in exchange for a share of any recovery. Class actions are complex legal proceedings that require court approval at several stages. The court must first determine whether the case is suitable for class action treatment, considering factors such as the commonality of the claims and the representativeness of the proposed class representatives.

If the court grants leave, the class action will proceed on behalf of all eligible New Zealand gamblers who lost money on SkyCity Online during the specified period. The funder will cover the legal costs, and if the case is successful, the funder will receive a percentage of the settlement or judgment amount.

What’s Next for SkyCity and its Online Operations

SkyCity is currently reviewing the legal action and preparing its defense. The company will likely file a response to the class action complaint in the coming weeks, outlining its legal arguments. The court will then schedule a hearing to consider the application for class certification. The timeline for resolving the lawsuit is uncertain, but it could take several months or even years to reach a final outcome.

Regardless of the outcome of the lawsuit, SkyCity will need to carefully consider its online gambling strategy. The legal challenge underscores the risks of operating in a complex regulatory environment. The company may need to reassess its compliance procedures and consider alternative approaches to offering online gambling services to New Zealand residents. The case also serves as a cautionary tale for other operators seeking to navigate the evolving landscape of online gambling regulation.