High-stakes lawsuits hit online casino giants ahead of gambling overhaul
Friday, 22 May 2026
A group of former gamblers have launched a high-stakes High Court class action against some of the world’s biggest online gambling operators, alleging they ran illegal offshore casino networks targeting Kiwis.
Three legal actions have been filed in the High Court at Auckland against New York Stock Exchange-listed giant Super Group (SGHC), British betting titan bet365 and local operator SkyCity Entertainment Group, alongside its overseas partner.
Collectively, the defendant companies are estimated to control more than half of the multibillion-dollar unlicensed online gambling market in New Zealand over recent years.
It comes as the Government overhauls the sector through the new Online Casino Gambling Act which, from December 2026, will restrict online casino gambling to 15 licensed operators.
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The plaintiffs, represented by barrister Davey Salmon KC and Timothy Lindsay of law firm Lindsay Francis & Mangan, allege the operators ran unlawful offshore gambling operations targeting New Zealanders in breach of the Gambling Act 2003.
The Post has confirmed the class action is being backed by a US-based litigation funder, as is common with representative proceedings.
The proceedings also allege customer gambling accounts and digital wallets amounted to financial products requiring compliance with the Financial Markets Conduct Act and consumer protection laws.
The lawsuit also alleges the companies engaged in “unconscionable conduct”, under the Fair Trading Act 1986, by using predatory systems, intensive marketing, and restrictive withdrawal conditions.
Super Group, a parent company, is officially incorporated in the tax haven of Guernsey.
Its brands, like Jackpot City and Spin Casino market themselves as “New Zealand online casino” spaces, but the fine print in user agreements mandate that any Kiwi seeking legal recourse must do so through the courts of the remote island of Alderney, or under the laws of the Mohawk Territory of Kahnawà:ke, an 8000-person First Nations reserve in Canada.
Super Group did not respond to a request for comment.
Bet365, majority owned by England’s richest woman, Denise Coates, and its Maltese-based subsidiaries, Hillside Gaming and Hillside Sports, are named as defendants. Coates is joint-chief executive, alongside her brother, John Coates.
In preliminary High Court hearings, the betting giant formally objected to the jurisdiction of the New Zealand courts, arguing that domestic judges have no legal authority to hear the consumer claims or hold their offshore network accountable.
Bet365 did not respond to a request for comment.
SkyCity is a household name in New Zealand as a bricks-and-mortar casino operator with venues in Auckland, Hamilton and Queenstown.
The class action argues the company routed its digital platform, SkyCity Online Casino, through an overseas partner predominantly based in Malta called Silvereye Entertainment Limited. Silvereye is a subsidiary of a public online gambling firm listed in Sweden.
The suit targets the legality of this relationship, covering six years of alleged player losses between February 2020 and February 2026. It is not known how many former gamblers are part of the lawsuit.
In March, SkyCity issued a statement to investors confirming it received notice of proceedings against itself, SkyCity Auckland Holdings Limited, and Silvereye.
A spokesperson for the company said it could not answer detailed questions from The Post, but said it intended to “vigorously defend” the proceedings in court.
DIA is the primary regulator of gambling. In a statement, director of gambling Vicki Scott said the department had not taken enforcement action “in relation to SGHC, Bet 365 or Silvereye or against SkyCity in respect of the operation of its online casino”.
DIA had also worked with SGHC “to ensure New Zealand’s advertising rules are understood and adhered to”, she said.
Under the new regulatory regime, from December 1, 2026, the only lawful way for resident New Zealanders to play online casino games will be via one of 15 licensed platforms.
Asked if operators’ historical role in providing or facilitating offshore online casino gambling would be considered in determining eligibility for licences, Scott said: “There are a range of statutory criteria the Department will take into account when deciding whether to award an online casino gambling licence. Each application will turn on its own facts.”
Lindsay Francis & Mangan declined to comment.