Casinos in Adelaide, Hamilton and Queenstown are unaffected.
Jason Walbridge started as SkyCity CEO in July, 2024. Photo / Jason Oxenham
The business, which says it is New Zealand’s largest entertainment provider, has some big plans for its quiet week when the doors will be barred.
The shutdown could cost the company $1 million or more per day and will be the first voluntary New Zealand casino closure.
Ex-CEO Michael Ahearne said in 2021 that each day SkyCity was shut during the pandemic cost the company $1m-plus revenue.
The Auckland casino operates 24/7 but all staff will remain working the same shifts they usually do, rostered on at different times over their 24-hour periods, unless they have chosen otherwise for the week.
Instead of dealing with customers and serving food and drinks inside the casino, staff will undergo refresher training, presentations and updates and receive information about the business.
SkyCity runs an annual staff roadshow to keep employees informed, for training in its mandatory host responsibility and other duties.
SkyCity shuts next week for five days. Photo / Jason Oxenham
A spokesman said the company planned a special event for the 700 staff, called a five-day expo.
“As this will be a 24-hour, five-day event, all rostered staff will be rostered as normal during this time unless they have requested a change or have opted to take annual leave. The event is designed to share information, conduct refresher training, foster engagement and collaboration across different departments.
“There is a timetable of learning sessions scheduled with an emphasis on enhancing customer care, host responsibility, preventing risk of financial crime and department-specific training. An example is enhanced customer service for those who work in the restaurants and bars affected by the closure,” he said.
The company holds an annual “game-plan” event “where we set out the plan for the year ahead. We’re holding [the] game plan during this week in the SkyCity Theatre to take advantage of the larger numbers who will be available”.
Walbridge, the current CEO, said: “We are rightly being held to account by the regulator for failing to meet our host responsibility obligations. Everyone at SkyCity has a role to play in rebuilding trust with our customers, shareholders and the public. We promised we would put the closure time to good use and have planned a five-day learning programme of staff engagement sessions where we will share information, take part in refresher training on host responsibility, minimising harm and preventing the risk of financial crime.”
The company has an obligation under the Gambling Act 2003 to identify problem gamblers, help them, invoke exclusion procedures and keep records of all that.
A notice within the premises said the closure applied to all gaming areas “and food and beverage outlets within those areas, including BLACK, Baccarat Room, EIGHT, Flare, Food Republic, PLATINUM on 1 and PLATINUM on 3″.
The closure comes after a gambler complained.
Vicki Scott, Internal Affairs’ gambling director, told RNZ’s Checkpoint in July that the longest time the complainant spent continuously at the casino’s slot machines was “in excess of nine hours”. The person spent more than $1m at the casino, she said.
Pokie machines are where SkyCity makes the most of its revenue. Photo / Whakaata Māori
“That had a real impact on this person and their life. This is just an example of the sort of harm that can be suffered by customers when these important obligations and systems fail,” Scott said.
The secretary for Internal Affairs told the Gambling Commission last year that the company’s host responsibility programme meant it must minimise harm. It must comply with statutory obligations, including self-exclusion; where a gambler agrees not to visit the casino.
A notice to customers visiting Auckland's SkyCity casino about the imminent shutdown in September – no reasons given here.
Internal Affairs lists its secretary as Paul James, although no one was named in last year’s submission.
The secretary said SkyCity must take all reasonable steps to assist someone it has reasonable cause to believe is a problem gambler, but who has not requested self-exclusion.
Patrons should be required to leave the casino after 12 hours of continuous presence, the secretary said. SkyCity should not rely on security personnel to exclude people.
SkyCity's Auckland casino. Photo / Dean Purcell
The Welcome to SkyCity staff training section should go further than just encouraging new employees to complete classroom and e-learning modules.
“There should be a mandatory training baseline. Reporting should be increased from annual to quarterly. Multiple declined Eftpos transactions should be defined as a strong indicator,” the secretary says of problem gamblers.
When it comes to training, SkyCity certainly has large areas for big staff gatherings, with its theatre and three hotels with 900-plus rooms throughout its precinct.
One staffer at the casino said the busiest shift was evenings with the highest customer numbers. Staff were rostered on according to patronage, he said.
John Crocker, Unite Union national secretary, said not all staff wanted to partake in the expo. Some staff said they did not want to be trained in duties like table gaming, he said.
The company said it reached an agreement with the secretary for Internal Affairs to resolve an application to temporarily suspend its casino operator’s licence.
“As part of the agreement, SkyCity has agreed to close the gambling area of the SkyCity Auckland casino for five consecutive days in 2024,” the company said.
SkyCity declared a $143.3m reported net loss after tax for its June 30, 2024 year due to what Walbridge called “challenging” times. The business reiterated its earnings guidance for next year. No final dividend was paid but analysts said this had been pre-flagged so wasn’t unexpected. Progress was made on regulatory overhangs, including with the Australian Transaction Reports and Analysis Centre and Department of Internal Affairs in New Zealand.
The new Horizon by SkyCity was forecast to provide $8m earnings in FY25 and the New Zealand International Convention Centre is due to open next year, total project costs unchanged, costing $76m to complete, Jarden analysts noted.
Shares have been trading down 37% annually around $1.43.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
