New Zealand’s casino in crisis
SkyCity Auckland casino keeps going through a crisis period as gaming offerings have been expanded countrywide.
New Zealand.- SkyCity’s Darwin salon operators are allegedly reevaluating the financial situation of the casino, located in Auckland, New Zealand. According to internal sources, the gaming salon is going through a major crisis since the government recently legalised a gaming expansion proposal.
SkyCity is evaluating the possibility of finally selling the Darwin casino after comments from the company’s new chief executive at an AGM in Auckland. CEO Graeme Stephens reportedly told shareholders that the casino has had “a tough year” following a decision by the government of the Northern Territory to allow 75 percent more gaming machines in pubs and clubs.
Stephens said that “despite a great location and the company’s owning land adjacent to the casino, it would not be making further investments there alone, and was now conducting a strategic review of its options to create shareholder value.”
Furthermore, the renowned businessman allegedly said that this would include a sale “but we aren’t there yet.” According to local press, SkyCity has already written down the value of its investment by A$95 million to A$195 million compared to its 2004 purchase price of A$195 million from MGM Mirage of US$231 million (in 2004 dollars).
