Latest report from NZ’s DOA shows gaming machine profits up despite fewer venues + DOJ investigate SkyCity financial check failures. (Photo by Thomas Coker on Unsplash)
The latest official numbers on gambling for July to September 2023 are out in New Zealand.
The Department of Internal Affairs report tracks how the country’s gaming machines are doing. It shows that profits from pokies went up 1.21 percent over the last quarter, hitting NZ$272 million total.
Now get this: that’s the second-highest take for that time of year since the department started following these figures back in 2015. And the boost happened even though there were fewer gaming venues and machines out there compared to before.
New Zealand’s gambling scene appears to be on the rise, but we don’t yet have the official figures from the Department of Internal Affairs for October to September 2023, which would give us an overall look at FY 2023.
There’s also drama with the Department of Internal Affairs accusing SkyCity casinos of slipping up on rules meant to stop money laundering. The agency says SkyCity failed in areas like checking out customers, reporting sketchy transactions, and other financial safeguards recently and years ago. SkyCity says sorry for the compliance problems but can’t comment much with the case now in court. This follows huge fines for similar issues at Australian casinos across the ditch.
What this report doesn’t include: As online casinos in New Zealand operate under licensing overseas, such as the MGA and Curacao licensing authorities, the operators are also overseas. The report doesn’t include gambling stats from our lists referring to NZ online casinos accepting crypto and New Zealand dollars abroad.
Latest Quarterly Stats on Gambling in New Zealand
The New Zealand Department of Internal Affairs keeps tabs on gambling nationwide and puts out regular reports. Their latest numbers for July through September 2023 show that profits from gaming machines took a slight jump – 1.21 percent over last quarter to NZ$ 272 million total from NZ$ 269 million.
That’s the second-highest take for that time of year since the department started tracking these figures in 2015. And get this – it happened even as the number of gaming venues and gaming machines in the country have been reduced. I guess that means there was more money spent per machine.
The number of gambling venues and machines has decreased this quarter. But profits per machine have gone up by 1.8 percent. This means each machine is making more money on average.
Some reasons profits may be rising even with fewer venues and machines:
- More players using the machines
- Players betting more per game
- Players playing the machines for longer hours
Some areas like Porirua City and Auckland City consistently have high profits per machine. This quarter, Tauranga and Hastings saw noticeable jumps in profits compared to previous quarters.
It’s hard to say for sure what’s behind the profit increase. Retail spending only went up 0.6 percent this quarter. We don’t have updated figures to compare to hospitality spending, which would typically be the closest match.
Separately, New Zealand’s Ministry of Health tries to get a sense of how all this gambling is impacting communities. They collect data on things like how many folks struggle with addiction, what drives people to gamble in the first place, and who’s using help services. The goal is to give decision-makers the info they need to create solid gambling policies and programs.
Source: This info was sourced directly from the New Zealand Department of Internal Affairs website. For the full report and additional resources that led up to the figures in this report, the DIA released a ‘Gaming Machine Profits‘ report.
Top 5 Territorial Authorities by GMP per EGM September 2024 Quarter. (Image Courtesy of dia.govt.nz)
Is the New Zealand DIA lining a huge fine for SkyCity?
The Department of Internal Affairs (DIA) has accused SkyCity casinos of breaking anti-money laundering rules. DIA boss Mike Stone says it’s crucial to stop criminals from using casinos to hide illegal money. SkyCity admitted it failed to enforce the rules well enough. The company said it would work with the DIA to fix the issues fast. But SkyCity can’t comment too much since the case is now in court.
The DIA found SkyCity slipped up in key areas where financial laws state that the casinos should trigger checks on certain financial transactions. Some of these areas include checking customer backgrounds, reporting suspicious transactions, and other areas where the casino should have been more alert with their financial checks—the financials in question span from recent transactions and several years in the past.
The casino and report make an interesting point: Nowhere does it say SkyCity helped money laundering or terrorist groups directly. As with many casinos, including online casinos like William Hill (fined £19.2 million), it is simply neglagence. Usually lack of tech and employee training as opposed to casinos helping launder money.
In a chat with investors, outgoing SkyCity CEO Michael Ahearne said the DIA news over the weekend surprised him. He said SkyCity has tried improving its systems but fell short. Ahearne wouldn’t get into the specifics. He said the incidents were mostly from a while ago. Investors kept asking what would happen next and if this would cost SkyCity. But Ahearne stayed quiet on the details.
SkyCity’s stock price has dropped 23% in the past year. These legal troubles just make things worse for the struggling casino business. We’ll have to see what goes down. It doesn’t look good for the gambling entertainment establishment.
Land-based casino fines in Oceania have been huge over the past 2 years
Over in Australia, we have seen similar issues with land-based casinos, and fines have been as high as AU$100 million. Could SkyCity be in the firing line for a NZ$100 million fine? Probably not, in my opinion. The casinos in Australia were found guilty of numerous charges and then repeated the same mistakes. In the case of SkyCity, I am sure there will be a hefty fine, but my guess is 7-figures.
Source: I sourced this news article from a story published under Anne Gibson in the NZ Herald. For the full details on the NZ Herald, you can visit the ‘Department of Internal Affairs files charges against SkyCity‘ news report.
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