SkyCity Entertainment Group Vows to Defend Against US-Backed Class Action Challenging Legality of Malta-Based Online Operations

SkyCity rejects claims in a US-backed class action seeking restitution for losses on its Malta-based online platform, as NZ prepares for domestic iGaming laws.

By: AXL Media

Published: Mar 9, 2026, 12:07 PM EDT

Source: The information in this article was sourced from iGaming Business

Challenging the Jurisdictional Validity of Offshore Licensing

SkyCity Entertainment Group is facing a significant legal hurdle as a US-backed group seeks to launch a class action lawsuit targeting its online casino operations. The claim centers on SkyCity Online, a platform operated via a Malta Gaming Authority (MGA) license through an overseas subsidiary, Silvereye Entertainment. The plaintiffs aim to challenge the lawfulness of providing these services to players in New Zealand, where iGaming has historically existed in a regulatory gray area. SkyCity has unequivocally denied any liability, stating that its use of third-party technology providers and international regulatory frameworks is a standard and legal industry practice.

Restitution Demands for Six Years of Wagering Losses

The proposed class action is ambitious in scope, seeking to cover all alleged wagering losses sustained by players between February 2020 and February 2026. If the court grants leave for the class action to proceed, it could open the door for thousands of claimants to seek compensation for their cumulative losses. The legal team behind the suit argues that the activities conducted via the Malta-based platform bypass local protections, raising pivotal questions about whether an offshore license is sufficient to legally serve the New Zealand market in the absence of a domestic framework.

Operational Structure and Third Party Management

In its defense, SkyCity clarified that it does not directly manage the day-to-day operations of the online casino. Instead, the platform is supplied and managed by the Gaming Innovation Group (GiG) and other third-party entities on behalf of its subsidiary, Silvereye Entertainment. SkyCity argues that because Silvereye is an overseas entity operating under a recognized Maltese regulatory regime, its activities should be considered compliant with international standards. The group has emphasized that this lawsuit is essentially a "test of lawfulness" regarding the intersection of international licensing and domestic consumer protection.