The Problem Gambling Foundation says gambling outlets should take note.

Internal Affairs has applied for a temporary suspension of SkyCity's gambling licence, after a former gambler complained.

It's accused Sky City of not meeting Host Responsibility rules, relating to detecting a client's continuous play.

The share market reacted to the application by wiping $260 million off the company's market value today.

Foundation spokesperson Andree Froude says this suspension will warn SkyCity and other gambling operators about the seriousness of breaching the rules.

"We want this to be a warning for other operators and for SkyCity that it's really important that they do meet their legal requirements."

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