SkyCity Warned for Promoting Melta Casino
Department of Internal Affairs has warned SkyCity for promoting Melta casino during the lockdown. Days before New Zealand moved to lockdown level 4, SkyCity sent emails to customers. In the message, the company revealed that the online casino operated by SkyCity Malta was “operating as usual”.
Following this incident, the Department of Internal Affairs (DIA) went on a month-long investigation to try and finalize that matter. DIA went on a mission to see if the email constituted any promotion of gambling. Internal Affairs found that SkyCity was in breach of section 16 of the Gambling Act 2003 which relates to advertising of overseas gambling being prohibited. However, the department found that SkyCity did not intentionally breach the Gambling Act. The company was issued with a formal warning.
Department Educated Itself About the Issue
The department revealed in correspondence to the complainant that education was the first step it took when investigating this matter. $10,000 is the amount SkyCity will be charged for promoting the Melta casino. This is the maximum penalty for breaching this section of the Act.
Chris Thornborough, Acting Director of Department of Internal Affairs says that it has “assumed” that SkyCity was not intending to breach the Act. However, an official warning is an appropriate punishment for the casino.
The department said they expect SkyCity to be cautious in future and avoid anything that might result in breaching the Act. According to Thornborough, the Department will take any breaches seriously in future.
SkyCity Malta Casino Receives Wage Subsidy from Government
The Government gave SkyCity Malta Casino over $21.6 million as part of the wage subsidy scheme. The company has recorded 900 job losses since the start of the lockdown. In an attempt to keep business afloat, SkyCity revealed that it would raise up to $180 million in a placement with institutional investors. The company also said it expects in a share purchase plan $50 million from shareholders.
Additionally, SkyCity arranged $170m in new debt facilities. All of this was part of the company’s plans to secure extra funding as well as strengthen its balance sheet. This will in the long run also help the company adjusts to its new normal.
In February, the company earnings outlook went from a net profit of close to $52 million which went down from $67 million.