Casino giant SkyCity Entertainment (ASX:SKC) is bracing for a legal battle as it faces potential class action proceedings regarding its online gambling operations in New Zealand.
The company confirmed it has received formal notice of proceedings against SkyCity Auckland Holdings and Silvereye Entertainment, aimed at testing the lawfulness of the digital gaming services managed by Silvereye on SkyCity's behalf.
The legal filing includes an application for a funded class action, seeking to recover gambling losses incurred by customers through SkyCity Online between February 2020 and February 2026.
While the scale of the claim could be substantial, SkyCity has remained firm in its stance, denying any liability and stating its intention to actively defend the proceedings in court.
At the time of reporting, SkyCity Entertainment's share price was $0.70.