SkyCity denies liability in class action targeting Malta online casino
Table of contents
- New Zealand casino operator denies liability in US-backed lawsuit challenging offshore gaming structure.
- Plaintiffs seek compensation for losses on the SkyCity Online platform between February 2020 and February 2026
- Legal challenge emerges as New Zealand moves toward a regulated online casino market with 15 licences.
SkyCity Entertainment Group is defending itself against a class action lawsuit that questions whether its Malta-licensed online casino can legally serve New Zealand customers.
The legal proceedings target SkyCity, its subsidiary SkyCity Auckland Holdings, and Silvereye Entertainment, the Malta-based company that operates the SkyCity Online platform. A US-funded group is backing the claim, though the specific organisation remains unnamed.
Plaintiffs are asking the court to rule on whether the online casino’s business model complies with gambling laws. If granted class action status, the case would represent players who lost money on the platform over a six-year period ending in February 2026.
Offshore model faces legal test
SkyCity operates its online casino through Silvereye Entertainment, which holds licence MGA/B2C/880/2021 from the Malta Gaming Authority. The platform relies on Gaming Innovation Group for technology and operations rather than being run directly by SkyCity’s core business.
The company argues this arrangement allows it to compete with foreign operators already targeting New Zealand players while complying with tax obligations and responsible gambling requirements.
Plaintiffs contend the setup may violate domestic laws prohibiting New Zealand-based companies from offering online casino games to local residents.
SkyCity has rejected the allegations and confirmed it will mount a vigorous defence. The operator characterises the proceedings as a legal test of its offshore structure rather than evidence of wrongdoing.
New Zealand law creates a regulatory gap by blocking domestic operators from offering online casinos while allowing residents to gamble on overseas platforms. This loophole has enabled international sites to capture an estimated NZ$750 million annually from New Zealand players.
Timing coincides with regulatory shift
The lawsuit arrives as New Zealand prepares to regulate online casinos for the first time. The government plans to begin the licensing process in July 2026 with expressions of interest, followed by a competitive auction in September and full applications from successful bidders.
The three-stage process will award up to 15 licences to operators who demonstrate financial stability, pass probity checks, and commit to player protection measures. The framework aims to redirect gambling revenue from unregulated offshore sites to licensed operators paying tax and supporting local communities.
Entain has publicly stated it may apply for up to three licences as part of its partnership with TAB New Zealand. The regulated market is expected to go live in 2027.
SkyCity previously faced regulatory pressure over its Adelaide casino operations but was allowed to keep its licence in 2025 after completing a suitability review.
Broader industry impact
The case could set precedent for how courts view Malta-based gambling operations serving customers in jurisdictions without domestic online casino licensing. Legal experts suggest the outcome may influence enforcement strategies in other markets where operators use similar offshore structures.
Malta’s gambling laws generally shield MGA licensees from the reach of foreign courts. This raised questions about the enforceability of New Zealand court decisions against Silvereye Entertainment.
SkyCity’s legal predicament centers on a crucial decision: should they seek a domestic license? Simultaneously, they’re engaged in a legal defense of their current Malta operations.
The case shows clear tensions between established offshore business models and emerging regulated frameworks designed to bring online gambling under local oversight.
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