In a strategic move to reinforce its leadership framework, SkyCity Entertainment Group has permanently instated a key member to its executive team. After serving as the interim Chief Information Officer since the previous November, the organization has officially confirmed the full-time appointment of the seasoned executive to the CIO role.
The individual in question, Michael McPherson, is no stranger to SkyCity, having previously held a position within the company as the ICT portfolio manager from September 2019 until June 2021. McPherson’s rich professional background includes a two-and-a-half-year tenure as the chief technology officer at Stuff, a major New Zealand media enterprise. His expertise and leadership skills are expected to streamline SkyCity’s technological advancements and digital operations.
McPherson’s career is robust, with an impressive track record of high-ranking positions in varied industries. Notably, he served as the CEO of Experieco, held a pivotal role as the head of national design at Spark Digital NZ and was at the helm as CEO of International Telematics, a business he also had a hand in founding. His well-rounded experience positions him as a valuable asset to lead SkyCity’s information technology strategy into a new era.
Expressing his enthusiasm, McPherson took to LinkedIn on the 18th of March to share his sentiment, “Happy to be back with the SkyCity Entertainment Group family.” His return comes at a time when SkyCity is confronting some significant regulatory challenges.
SkyCity faces scrutiny and potential legal repercussions as the New Zealand department of internal affairs recently announced impending civil penalty proceedings against the company’s subsidiary, SkyCity Casino Management (SCML). The issue stems from SCML’s alleged non-compliance with the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act 2009. The consequences of this could be severe, with SCML potentially facing fines up to NZ$8.0 million if the court rules against them.
As part of the review process, SkyCity is accused of five distinct causes of action regarding compliance issues under the aforementioned Act. The concerns stem primarily from historical practices, with some incidents already self-reported to the corresponding department. Despite these setbacks, SkyCity has been proactively running an enhancement program focused on anti-money laundering and counter-terrorism financing. This aims to not only amend compliance systems but also rectify previous shortcomings.
In response to the civil proceedings, SkyCity has expressed its intention to cooperate fully with the department to resolve any compliance shortfalls.
The recent developments are not isolated incidents. SkyCity’s regulatory woes extend back to September, when there was a call by the New Zealand secretary of the department of internal affairs to suspend SkyCity’s casino license for an estimated ten days, which may be related to the ongoing SCML subsidiary case. Furthermore, SkyCity has faced parallel issues in Australia, with the Australian Transaction Reports and Analysis Centre initiating federal proceedings over anti-money laundering failings at SkyCity Adelaide.
In a series of steps addressing these concerns, SkyCity undertook a thorough review of its anti-money laundering measures and programs related to counter-terrorist financing in May 2023. By August, the company set aside AU$45 million as a provisional figure in anticipation of a civil penalty due from Austrac, reflecting the seriousness with which it is approaching the issue.
The company’s C-suite also saw a notable change, with the announcement that Chief Executive Michael Ahearne would step down from his position and leave the company within the same month. This was followed by a forward-looking statement from SkyCity warning that its adjusted EBITDA for the 2024 financial year might decline, reversing a previously estimated increase.
As the SkyCity Entertainment Group navigates through these testing times, the appointment of McPherson is a central part of reinforcing their executive core, demonstrating a clear commitment to ushering in strengthening leadership and driving technological prowess amidst these challenging circumstances.
