New Zealand casino operator SkyCity Entertainment Group has gone live with its first online casino via its SkyCity Malta subsidiary and its partnership with online gambling company Gaming Innovation Group (GiG).
SkyCity has launched its skycitycasino.com a few months after it originally announced its plans to enter the iGaming space in a bid to adapt to the ever-changing gambling environment.
As mentioned above, SkyCity is operating its online casino through its Maltese subsidiary. The company is using platform, casino content, fully-managed services, front-end development, CRM, and compliance and marketing by GiG.
Prior to venturing into the online gambling field, SkyCity operated land-based casinos in New Zealand and Australia.
Of the recent launch of their online casino, SkyCity CEO Graeme Stephens said that while they do not expect any immediate material impact on their revenue, the move represents “another step on our journey of pursuing opportunities to grow and diversify our earnings, addressing a new, fast growing industry which is highly complementary to our land-based activities and offering customers a multi-channel gaming experience.”
SkyCity and GiG first announced their partnership this past May. The casino operator chose to operate its online casino from Malta so as to circumvent New Zealand’s gambling law, under which the state-run Lotto and TAB are the only two authorized providers of online gambling services from within the territory of the nation.
Potential Market Reorganization
News of SkyCity and GiG launching their new New Zealand-facing online casino emerged shortly after the country’s Department of Internal Affairs announced the start of a public consultation, seeking input from the general public whether the current iGaming regulatory regime should be replaced with a more liberal framework that would allow more companies, including offshore ones, to obtain licenses from local authorities and operate in a regulated environment.
Interested parties will have until September 30 to voice their opinion on whether changes need to be implemented or they are content with the current regulations.
SkyCity’s boss himself said that “a regulated online gaming market in New Zealand” remains their preferred solution. Under the company’s agreement with GiG, the casino operator will be able to assume the B2C components of their joint business if New Zealand decided to liberalize its market.
According to information by the Department of Internal Affairs, New Zealand’s offshore online gambling market, that is offshore operators neglecting the regulations and servicing local gamblers, saw an 84% increase from NZ$132 million in 2015 to NZ$243 million in 2017. The latest industry estimates indicate that New Zealand gamblers have spent NZ$381 million over the past 18 months.
It also emerged late last month that the Department of Internal Affairs mulled a ban on the use of credit cards for gambling purposes. The agency said that the move was discussed as a measure for the protection of local gamblers from spending excessive amounts of money on unregulated gaming and betting websites.
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