SkyCity Adelaide faces impairment and tax adjustment

The company said they do not impact its underlying EBITDA or NPAT for the financial year ended June 30.

New Zealand.- SkyCity has announced that it expects to impair its Adelaide assets by AU$86.2m (US$57.5m) to reflect updated assumptions regarding the introduction of mandatory carded play at the SkyCity Adelaide casino in 2026 and increased legal and compliance costs associated with AML/CTF and host responsibility uplift programs.

The company also expects to record a tax adjustment of NZ$129.6m (US$78.4m) due to changes in New Zealand tax laws enacted on March 28. The change in law eliminates the ability to depreciate commercial buildings with a useful life of 50 years or more.

SkyCity said the non-cash adjustments will not affect its underlying EBITDA or underlying NPAT for the fiscal year ending on June 30. Group financial statements will be released on August 22.

In June, the Federal Court of Australia approved the AU$67m (US$44.5m) settlement agreement stemming from civil penalty proceedings initiated by the Australian Transaction Reports and Analysis Centre (AUSTRAC) against SkyCity Adelaide for breaches of the AML/CTF Act.

SkyCity has also been ordered to pay AUSTRAC’s legal costs amounting to AU$3m (US$2.01m). The court determined that SkyCity’s AML/CTF programs did not comply with the requirements of the AML/CTF Act, particularly in terms of customer due diligence. According to the Federal Court, these failures exposed the casino to risks of money laundering and terrorism financing, making the Australian community and financial system vulnerable to exploitation by criminals.

See also: New Zealand to introduce licensing system for online casinos