SkyCity Faces Legal Test Over Malta-based Online Casino

SkyCity is facing legal proceedings over its Malta-based online casino operation, in a case that could become a major test of how New Zealand law applies to offshore gambling offered under a local brand. The company says it has received notice of proceedings against SkyCity, SkyCity Auckland Holdings, and Malta-based Silvereye Entertainment, which runs SkyCity Online on behalf of an overseas SkyCity subsidiary.

What SkyCity has told the market

In its 6 March market release, SkyCity said the proceedings concern online gaming operations run by Silvereye Entertainment on behalf of an overseas subsidiary linked to SkyCity Online. The operator said Silvereye is based in Malta and licensed by the Malta Gaming Authority.

SkyCity also confirmed the claim includes an application for leave to proceed as a funded class action. According to RNZ, the group behind it has not yet been publicly named, but is understood to be seeking refunds for losses made by New Zealand customers over a six-year period.

The company has not set out any estimate of financial exposure. It said it is reviewing the action, denies liability, and will defend the case.

Why this case matters in New Zealand

The case lands in a legally awkward part of New Zealand’s gambling market. The Department of Internal Affairs says it is legal for New Zealanders to gamble on offshore casino websites, but online casinos based in New Zealand are illegal under current law. It is also illegal to advertise offshore gambling operators in New Zealand.

This case could become an important test of how New Zealand law applies when an offshore online gambling platform uses a major domestic casino brand to reach local players.

That is why this case could matter beyond SkyCity itself. RNZ reported that SkyCity set up the Malta operation after losing business to overseas operators, believing the offshore structure would let it use the SkyCity brand while still complying with New Zealand requirements. The proceedings appear aimed at testing that assumption in court.

A broader regulatory backdrop

The dispute is unfolding while New Zealand moves toward a regulated online casino market. The government’s Online Casino Gambling Bill allows for up to 15 licences to be auctioned, with licensed operators able to advertise and unlicensed operators facing penalties.

That timing makes the SkyCity case especially notable. A court fight over a Malta-based platform using a major New Zealand casino brand could shape how lawmakers, operators, and consumers view the gap between today’s offshore market and the incoming licensed regime. That broader impact is still uncertain, but the legal challenge now puts SkyCity Online squarely in the spotlight