7.
23 In connection with those electronic forms of gambling, and again with the approval of the Commissioner, SkyCity on 5 May 2014 introduced a cashless gaming system. Under that approved cashless gaming system, eligible customers have been able to hold cashless gaming accounts (into which customers have been able to deposit cash and receive winnings) linked to cashless gaming cards which have stored information about the funds in the accounts. Customers have been able to insert their cards into EGMs and ATGs and to choose to convert funds in their accounts into electronic gaming credits so as to enable them to bet.
The Rewards Program, points, and converted credits
24 SkyCity has operated its loyalty program known as the "Rewards Program" in which customers over the age of 18, referred to as Members, have been able to participate without charge since it commenced operating EGMs and ATGs. And since it introduced the cashless gaming system, SkyCity's Rewards Program has been linked to its cashless gaming system.
25 SkyCity has reserved to itself the right to amend the terms and conditions of its Rewards Program at any time and has from time to time exercised that right. But the essential features of the Rewards Program have remained unchanged.
26 Members have received membership cards which have doubled as cashless gaming cards. They have also received loyalty points ("points") by reference to their gambling and other expenditure as well as on a discretionary basis – for example, to mark birthdays or for promotional purposes. Points have expired after six months of receipt, have not been transferable and have not been able to be redeemed for cash except on rare occasions at SkyCity's discretion.
27 By inserting the Member's membership card into an EGM or an ATG, however, a Member has been able to "convert" accumulated points into electronic gaming credits on the machine, provided that the Member has passed through the "gate" of wagering electronic gaming credits to an amount equal in value to the accumulated points to be converted on the day of conversion. These are the converted credits. Once converted, converted credits are indistinguishable from credits purchased by customers from their own funds.
28 Having converted accumulated points into converted credits, a Member has then had a choice between two options. The Member could choose to redeem the converted credits for cash (up to a specified monetary threshold and subject to a three-year forfeiture period) by taking their membership card to SkyCity's cashier – an option referred to in argument as "turning left". Alternatively, the Member could choose to use the converted credits to bet on an EGM or an ATG –
