AUSTRALASIA 20
New zealand
SkyCity takes to the cloud SkyCity Entertainment Group is forging ahead with plans to launch an online casino, even though offering internet gaming is prohibited under New Zealand law.
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“As an established land-based casino operator he country’s dominant land-based operator is getting around the ban by with significant investments in New Zealand running its operations out of Malta. and a track record of compliance in a highly Although it’s not possible to offer regulated environment, we know a great deal services from home, many New Zealanders about host responsibility and harm minimization. gamble using offshore sites, which is not illegal. We believe the skycitycasino online gaming site This results in a significant loss of revenue offers customers an opportunity to enjoy playing to the government and onshore gaming and in a safe, secure environment with a brand they wagering firms. According to reports, some $400 know and trust and we will be striving to set the million a year is currently leaking offshore to benchmark for any regulation in the future.” Stephens says SKYCITY will be making a unregulated overseas websites. SkyCity wants to reclaim some of the $180 million of that which conservative entry to online gaming and will actively avoid the sales and marketing tactics goes to online casinos. SkyCity’s Maltese subsidiary recently adopted by some existing overseas operators. “This means SKYCITY is not initially announced it would partner with Gaming Innovation Group Inc (GiG) to provide New expecting to monetize materially from this Zealanders the ‘skycitycasino’ online gaming initiative – it should be seen more as a strasite. It’s expected to go live in mid-2019 and tegic entry into a space that we believe has will be operated from Malta under a .com URL. long-term relevance.” About the company’s tie up with GiG, Stephens The service will be targeted at Kiwis and said he believes “GiG provides the right balance of will be in Kiwi dollars. SKYCITY Chief Executive Graeme Stephens experience, coupled with a new software platform said that while the skycitycasino online gaming relevant to the future and access to high-quality site will be operated from offshore, it will ensure content for online gaming customers. GiG has that its obligations under New Zealand General experience in partnering with land-based casinos through their relationship Sales Tax legislation are with Hard Rock Intercomplied with. national and is licensed Stephens went on in some of the world’s to add that SKYCITY According to most regulated gaming would be supportive reports, some markets, including the of any future plans United Kingdom and by the government to $400 million a the United States.’’ regulate the New Zealand year is currently As part of the agreeonline casino market, ment, GiG will provide including introducing leaking offshore a full-suite online casino an appropriate licensing to unregulated solution which includes regime for operators a technical platform, and imposing taxes overseas websites. gamingcontent,managed and mandator y services and front-end host responsibility development. The arrequirements. “Online casinos are widely used by New rangements will be structured primarily as a Zealand customers and this trend will only revenue share arrangement, with the majority continue. The world is rapidly moving online of operating costs variable or directly linked to and our industry is no exception, so we have to revenue generation. The SKYCITY subsidiary ensure we remain relevant to changing consumer in Malta will assume a modest level of on-going fixed costs, such as staff, technical support trends and preferences,’’ he says.
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Asia Gaming Briefings | August 2019
and regulatory and compliance. If SKYCITY ultimately becomes a licensed operator in a regulated New Zealand online casino market, the agreement with GiG allows for SKYCITY to assume the B2C (i.e. customer facing) components of the business in the same way as it does for its current land-based activities. The skycitycasino online gaming business will be managed by an Online Director (Steve Salmon) based in Europe. Mr Salmon has a wealth of experience in online casino gaming and wagering, including senior leadership roles with industry leaders such as Rank Group plc, a leading multi-channel gaming operator in the United Kingdom, and High5 Games, a leading content creator for the land-based, online and social gaming markets. Although SKYCITY is not anticipating meaningful incremental earnings from its online business pre-regulation of the online casino market in New Zealand, Stephens felt that “consistent with our group strategy, longer-term we see an exciting opportunity to grow and diversify our earnings through provision of a multichannel offering to gaming customers both online and at our land-based casinos in New Zealand.”
