SkyCity Sued Over Malta-Based Online Casino Operations

A US-funded class action lawsuit has been filed against SkyCity over its Malta-based online casino New Zealand operations, challenging the lawfulness of the gambling platform. The legal action targets the Malta subsidiary’s online gaming operations, which have been running since 2020. The class action group seeks to test the legality of the Europe-based Silvereye operations conducted on behalf of SkyCity’s Malta entity. The lawsuit specifically covers gambling losses incurred through the Skycity online casino NZ platform between February 2020 and February 2026. SkyCity established the Malta operations following competitive pressure from overseas online operators marketing gambling services to New Zealand residents. The company believed this structure would enable legal operation under the SkyCity brand while maintaining compliance with New Zealand regulations.

What the Class Action Alleges Against SkyCity

The legal proceedings commenced by the unnamed party challenge Silvereye Entertainment Limited, a Malta-based third party licensed by the Malta Gaming Authority. Silvereye operates the online casino New Zealand gaming platform on behalf of SkyCity’s overseas Malta subsidiary. As part of the filing, the claimant requests court approval to pursue the case as a funded class action covering losses incurred by players between February 2020 and February 2026.

The claimants seek refunds for every New Zealand gambler who lost a bet on the Malta-based Skycity online casino NZ platform, on the premise that the online platform was illegal. This approach aims to recover the total amount lost by customers who placed bets through the Malta-run operations over the six-year timeframe. If the court allows the collective lawsuit to proceed, it could involve a large number of gamblers who used the site during that period.

The identity of the US organization backing the claim has not been disclosed. The dispute centers on examining whether the structure and operations of the online casino comply with applicable laws. The funded class action structure adds significant weight to the lawsuit, as success for the plaintiff could open claims from anyone who played and lost during the specified period.

Why SkyCity Established Malta-Based Online Operations

In August 2019, SkyCity launched its online casino through SkyCity Malta, a Maltese subsidiary, partnering with Gaming Innovation Group, Inc to provide the gaming platform. GiG operates the casino site from Malta on behalf of SkyCity. The decision to establish Malta-based operations stemmed from declining potential revenue, as overseas online operators had been successfully marketing gambling services to New Zealand residents.

New Zealand’s offshore online gambling market was estimated at approximately NZGBP 127.07 million annually. The regulatory environment presented a unique opportunity, as it remained legal for New Zealand residents to participate in gambling activities on offshore sites, even though local operators faced restrictions on offering such services. SkyCity believed the Malta structure would enable legal platform operation using its brand while maintaining compliance with New Zealand tax regulations and host responsibility requirements.

Malta’s appeal as a jurisdiction extends beyond regulatory convenience. The country established its Lotteries and Gaming Authority in 2001, becoming the first European Union nation to regulate online gambling. This framework provides operators with a predictable legal environment and highly regarded licensing through the Malta Gaming Authority. CEO Graeme Stephens described the launch as an exciting milestone the company had worked toward alongside SkyCity Malta and GiG.

SkyCity Denies Liability and Prepares Defense

SkyCity issued a statement to the market declaring the class action group was seeking to test the lawfulness of the online gaming operations operated by Europe-based Silvereye on behalf of SkyCity’s Malta subsidiary. The casino operator denied any such liability and confirmed it would actively defend the proceedings. In its disclosure, SkyCity stated outright that it rejects any responsibility tied to the proceedings.

The company plans to contest both the class action application and whatever substantive arguments the plaintiff brings forward. SkyCity emphasized that the legal proceedings represent a test of the lawfulness of its online gambling operations, rather than an admission of wrongdoing. The group vowed to contest the legal challenge vigorously as it proceeds through the courts.

SkyCity appears confident that its arrangement meets all relevant legal standards, despite the plaintiff’s effort to pull the parent company into the dispute. The firm stance suggests it views the challenge as lacking merit, likely arguing that its subsidiary and third-party partners operate within proper bounds. The company was still reviewing the legal action and would make no further comment. SkyCity’s commitment to a strong defense signals readiness for what could be a lengthy process. Nonetheless, this is not the first time that SkyCity has faced regulatory scrutiny.