Australian High Court allows SkyCity to appeal casino duty ruling
The operator has been granted special leave to appeal the South Australian Supreme Court’s ruling.
Australia.- SkyCity Entertainment Group has announced in a company filing that the High Court of Australia has today (June 7) granted SkyCity Adelaide special leave to appeal the South Australian Court of Appeal’s judgment on the interpretation of the Adelaide Casino Duty Agreement.
The dispute involves differing interpretations on the taxation of loyalty points accumulated at SkyCity’s Adelaide casino. The High Court’s decision means that a full hearing of the appeal will take place later this year. The interest rate for outstanding duty, and whether the interest provision in the Casino Duty Agreement is enforceable, will be determined by a judge at a later date.
If the decision is unfavourable to SkyCity, it may be obliged to pay penalty interest of up to AU$22.8m on the additional casino duty. A successful appeal could reduce this to approximately AU$2.4m.
The company has updated its earnings guidance for the fiscal year 2024. SkyCity now expects underlying group EBITDA of between NZ$280m (US$173.5m) and NZ$285m (US$176.6m) and net profit after tax (NPAT) between NZ$120m (US$74.3m) and NZ$125m (US$78.1m). It also announced the suspension of dividends for the second half.
