Class Action Filed Over SkyCity’s Malta-Based Online Casino

A legal challenge has been launched against SkyCity Entertainment Group over its offshore online casino operations, paving the way for a large class action that seeks compensation for gambling losses accumulated over several years.

SkyCity Faces Lawsuit Testing Legality of Online Gaming Platform

The New Zealand-based casino and entertainment operator disclosed in a market update that it had been notified of court proceedings that target the company, its subsidiary SkyCity Auckland Holdings Limited, and Malta-based firm Silvereye Entertainment Limited. Silvereye, which holds a license from the Malta Gaming Authority, operates the SkyCity Online platform on behalf of a SkyCity subsidiary located overseas.

The legal action aims to examine whether the structure and operations of the online casino comply with applicable laws. As part of the filing, the claimant is requesting court approval to pursue the case as a funded class action that would cover losses incurred by players on the platform between February 2020 and February 2026.

If the court allows the collective lawsuit to proceed, it could involve a large number of gamblers who used the site during that period. Reports suggest the claim is backed by a group with funding from the United States, though the identity of the organization behind the action has not been disclosed.

SkyCity Denies Claims as Lawsuit Targets Offshore Casino Model

The plaintiffs are expected to argue that the online casino was not operating legally when offering services to New Zealand-based players. Based on local media coverage, the claim may seek the recovery of the total amount lost by customers who placed bets through the Malta-run platform over the six-year timeframe.

SkyCity has rejected the allegations. In its statement to investors, the company indicated that it does not accept responsibility for the claims being made and intends to contest the case in court.

The dispute centers on a structure used by many gambling companies to reach international customers. SkyCity launched its online casino through a Malta-based subsidiary and partner companies after facing growing competition from foreign gambling websites already targeting New Zealand users.

Under the country’s Gambling Act 2003, locally based companies are prohibited from offering online casino games to residents. However, New Zealand players are permitted to use offshore gambling sites, a regulatory gap that has allowed overseas operators to attract local customers for years.

SkyCity believed that establishing an online platform through a Malta-licensed partner would enable it to provide casino games under its brand while remaining compliant with New Zealand rules, which includes taxation and responsible gambling obligations. The new lawsuit is expected to test whether that approach was sound.

The case arrives as the New Zealand government prepares to introduce a regulated online casino framework. Authorities are working toward issuing up to 15 licenses as part of a new system expected to begin later this year.Legal experts suggest the outcome of the proceedings could have an impact not just on SkyCity but also on other operators who rely on offshore licensing models to serve international markets.