SkyCity Entertainment Group has confirmed the appointment of Andrew McPherson as its permanent Chief Information Officer (CIO). McPherson had been serving as the interim CIO since November of last year.
McPherson rejoined SkyCity after spending two and a half years as the chief technology officer at New Zealand-based media company Stuff. His previous role at SkyCity was as ICT portfolio manager, a position he held between September 2019 and June 2021.
Throughout his career, McPherson has held various leadership positions, including CEO of Experieco, head of national design at Spark Digital NZ, and CEO of International Telematics, a company he also co-founded.
“Happy to be back with the SkyCity Entertainment Group family,” McPherson wrote in a LinkedIn post on March 18.
SkyCity Facing Civil Penalty Proceedings
McPherson's appointment comes at a challenging time for SkyCity. In February, the New Zealand Department of Internal Affairs announced plans to file civil penalty proceedings in the country's High Court against SkyCity and its subsidiary, SkyCity Casino Management Limited (SCML).
These proceedings stem from SCML’s alleged breaches of New Zealand's Anti-Money Laundering and Countering Financing of Terrorism Act 2009. If the court accepts the claim, either in full or partially, SCML could face penalties of up to NZ$8 million (£3.8m/€4.5m/US$4.9m).
The proceedings follow a review of SCML’s compliance practices. SCML holds the license to operate SkyCity's land-based casinos in Auckland, Hamilton, and Queensland. The draft pleadings outline five major compliance issues related to the Act, which are seen as significant.
SkyCity has stated that these issues mostly concern historical matters, some of which had been previously self-reported to the Department. The company has also been running an anti-money laundering and counter-terrorism financing improvement programme in recent years to rectify compliance issues and address historical deficiencies.
In response to the civil proceedings, SkyCity has pledged to work with the Department of Internal Affairs to resolve any issues.
SkyCity’s Broader Regulatory Challenges
The civil penalty case adds to a series of regulatory difficulties for SkyCity. In September, the New Zealand Department of Internal Affairs applied to suspend SkyCity’s casino license for approximately 10 days. Although this also involved SCML, it remains unclear if this is related to the current civil proceedings.
SkyCity is also facing scrutiny in Australia. In late 2022, the Australian Transaction Reports and Analysis Centre (Austrac) launched federal proceedings against SkyCity Adelaide for anti-money laundering lapses.
In May 2023, the operator initiated a review of its counter-terrorist financing and anti-money laundering measures. By August, SkyCity had set aside AU$45 million in anticipation of a likely civil penalty from Austrac.
In October, SkyCity announced that CEO Michael Ahearne would be stepping down, with his departure set for this month.
The company concluded the year by warning that its adjusted EBITDA could decline for the 2024 financial year, despite earlier forecasts indicating an expected increase.
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