Australia: Adelaide Casino to crack the VIP business
It is expected to reopen in 2021
Australia.- SkyCity Entertainment Group share price is getting wide attention from investors after some important announcements made during its presentation on the company’s 2019 Investors Day that took place last week.
As outlined, its plans for Adelaide Casino, involving an AU$330 million (€250 million) renovation of the iconic property, are intended to claim a piece of Australia’s international VIP Business.
Despite a broader Australian economy slowdown, SkyCity seems to believe in the South Australian region. It is interested in investing in major infrastructure projects. The idea is to support the economy but also as a result of the population and tourism growth.
Although SkyCity’s earnings from the Adelaide Casino has been flat over the last 5 to 10 years, the company is focusing on its long-term potential after solving “structural issues”.
They said that cracking the VIP Business has been “historically challenging” for Adelaide because the city lacks gaming facilities.
Now they are convinced that it is possible to boost the investments following some “unique experiences”. Some places are Barossa Valley, McLaren Vale wine regions, and Kangaroo Island, and some vital characteristics of the city. It is a safe, clean, green city and has an international cultural environment.
Adelaide Casino currently attracts less than 1% of Australia’s annual VIP gaming turnover. Expected to open in 2021, the expanded Casino will have 123 room all-suite boutique hotel, restaurants, bars and cafés. Also, it will have space for 750 people, a 1500 space car park and improved back-of-house facilities.
