SkyCity Sued over Online Casino Operations
A proposed class-action lawsuit is being organized against subsidiaries of SkyCity Entertainment Group and its Malta-based online casino partner Silvereye Entertainment Limited. The case reportedly involves a US-backed group seeking to challenge the legality of the companies' online gambling operations offered under the SkyCity brand.
The plaintiffs, whose identities have yet to be revealed, are attempting to recover gambling losses incurred on the SkyCity Online platform between February 2020 and February 2026. Their legal claim seeks to test whether the Silvereye-operated platform complied with New Zealand law while targeting local players.
Related: SkyCity Faces Fine of Tens of Millions over AML Failures at Adelaide CasinoSkyCity Entertainment Group is New Zealand's largest tourism, leisure, and entertainment company and has operated land-based casinos in several cities. The company partnered with Silvereye Entertainment Limited, an operator licensed by the Malta Gaming Authority, to launch the SkyCity Online Casino.
Reports indicate SkyCity believed the partnership with a Malta-licensed operator would allow the online platform to function within existing regulatory constraints. The arrangement relied on Silvereye operating the casino from Malta while the SkyCity brand was used for marketing and customer recognition.
New Zealand's gambling legislation permits online wagering on racing, sports, and lotteries through authorized providers. Domestic companies are prohibited from offering online casino gambling services to residents.
Despite those restrictions, it is not illegal for individuals in New Zealand to gamble on offshore online casino websites. This regulatory dichotomy has allowed international operators to accept New Zealand customers without being physically based in the country.
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Legal challenge examines offshore casino framework
The SkyCity Online platform emerged within that legal environment through Silvereye's Malta license. The lawsuit seeks to determine whether the structure used by the companies complied with New Zealand law or circumvented it.
According to a legal filing connected to the case, SkyCity has denied liability for the alleged gambling losses identified by the plaintiffs. The company has stated it will actively defend the proceedings brought against its subsidiaries.
The dispute may also examine protections contained within Malta's Gambling Act, which restricts the enforcement of certain foreign court judgments against companies licensed by the Malta Gaming Authority (MGA). Those provisions have become a salient issue as the claim attempts to pursue recovery from an MGA-licensed operator.
The timing of the lawsuit coincides with New Zealand's planned introduction of a regulated online casino market later in 2026. Government officials have indicated that 15 licenses will be made available once the regulatory framework is implemented.
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