SkyCity reverses course on application to operate only pokie machines at its casinos

Sunday, 31 May 2020

Former pokies addict Michael Demchy on his struggle with gambling away a fortune in machines. (Video first published in 2018)

Casino giant SkyCity have made a sudden U-turn on plans to shut their gaming tables after the move was revealed by Stuff.

The news has been welcomed by problem gambling campaigners as a victory for common sense.

The Gambling Commission gave SkyCity interim permission to operate only the pokie machines at its Hamilton and Queenstown casinos until the end of Alert Level One after hearing the casino company faced a 'softening' market because of Covid-19.

SkyCity had also applied for a permanent relaxing of Condition 8 - the rule forcing them to always operate at least one table game, such as roulette or blackjack - at all their casino sites, including Auckland, when the doors were open.

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SkyCity had permission to stop using its gaming tables and focus solely on pokie machines as it recovered from the impact of the Covid-19 pandemic. The casino withdrew its application after it was revealed by Stuff.

The move had shocked the Problem Gambling Foundation, who say poker machines are the most addictive form of gambling. It was also unpopular with pub gaming machine trusts, who are compelled to return 42 per cent of the money lost in machines as community grants, while SkyCity gives closer to six per cent.

But after Stuff reported on SkyCity's applications to the commission, the casino giant rapidly announced it would withdraw its bid for a permanent change to condition 8.

In a statement, chief executive Graeme Stephens said table games would continue to be 'an integral and profitable part' of the casino's business.

'As such, the application to obtain this dispensation on an ongoing basis is not required and has now been withdrawn.'

Stephens' statement suggested the Hamilton and Queenstown moves had been safety-related. The two casinos now had 'health and safety protocols' allowing them to offer table games.

However, the Gambling Commission's decision said it had rushed through permission on economic grounds, saying SkyCity faced a 'softer and evolving market”. Table games are more expensive to run as they take up much more staff time than pokies.

The casino had earlier explained the move was to 'provide operational flexibility in the uncertain environment arising from the Covid-19 crisis.”

Problem Gambling Foundation chief executive Paula Snowden, who planned to oppose the change to condition 8, said: 'What a relief for everyone who was worried about what it would do to the people who have problems with gambling.

'Thank goodness that commonsense has prevailed. This is not in the New Zealand public health interest, nor it is in the interests of Covid-19 recovery.

'It could be perceived that SkyCity are doing the right thing at least.'

Snowden had attacked the commission as 'absolutely incompetent' for granting the Hamilton and Queenstown variations without consulting them or other interested parties or publicising the decision.

Hamilton mayor Paula Southgate said she didn't know about the decision and said the process 'doesn't sit well with me'.

Snowden also said the commission showed 'flagrant disregard' for the Gambling Act, which says regulators must try to minimise public harm. She said the commission often took the “path of least resistance” because it was afraid of expensive legal challenges to its decisions.

The Gambling Commission had refused to respond to that criticism, but had promised to 'consult widely' on SkyCity's permanent application.