SkyCity Entertainment Faces Proposed Lawsuit for Alleged Breaches of Anti-Money Laundering Laws
SkyCity Entertainment, the New Zealand-based casino operator, saw its shares drop significantly following news that its subsidiary, Skycity Casino Management Ltd (SCML), is facing a proposed lawsuit for alleged breaches of anti-money laundering laws. Shares fell by up to 2.4% to NZ$2.03, marking the largest daily loss since December 19 if the downward trend continues. The company confirmed that New Zealand’s Internal Affairs Department is planning to initiate civil proceedings against SCML, which could result in a maximum penalty of NZ$8 million ($4.91 million) for the breach.
In response to the developments, SkyCity expressed disappointment with its failure to meet the necessary standards and acknowledged the actions taken by the department. They assured stakeholders that they will cooperate fully with the department going forward. The company also highlighted its ongoing efforts to enhance its compliance with anti-money laundering and terrorism financing laws since late 2021. However, the department is still in the process of reviewing the implications of its findings on SkyCity’s compliance.
This is not the first instance of regulatory trouble for SCML. In September, the department applied for a temporary suspension of SCML’s licenses after it failed to meet certain conditions. SCML currently holds the licenses for SkyCity’s casinos in Auckland, Hamilton, and Queenstown.
Investors should be cautious when trading in financial instruments and cryptocurrencies, as they are subject to high risks, including the potential loss of their entire investment. Cryptocurrency prices can be highly volatile and influenced by external factors such as financial, regulatory, or political events. Before engaging in such trading activities, individuals should fully understand the associated risks and costs, consider their investment objectives, level of experience, and risk tolerance, and seek professional advice if necessary.
Fusion Media, the source of this information, reminds readers that the data on their website may not be real-time or accurate. While efforts are made to provide accurate data and prices, there may be discrepancies due to market makers. Fusion Media and its data providers do not accept liability for any losses or damages resulting from trading activities or reliance on the information provided on their website.
Using, storing, reproducing, displaying, modifying, transmitting, or distributing the data from Fusion Media’s website without explicit prior written permission from Fusion Media and/or the data provider is strictly prohibited. All intellectual property rights belong to the respective providers and/or exchanges supplying the data.
Fusion Media may receive compensation from advertisers based on user interactions with advertisements on their website.
Analyst comment
Negative news.
As an analyst, the market is likely to react negatively to the news, causing further decline in SkyCity Entertainment’s shares. Investors may be concerned about the potential financial penalty and the company’s compliance issues. The ongoing regulatory trouble and the uncertainty regarding the department’s review will also add to market uncertainty.
