SkyCity shares dive on New Zealand casino license suspension threat
SkyCity Entertainment, the ASX-listed owner of the Adelaide casino, could temporarily lose its licence to operate in New Zealand after it allegedly broke gambling harm minimisation rules.
The company is already facing a South Australian probe into whether it is fit to hold a licence in Adelaide, but the business now faces the prospect of temporarily losing the licence that allows it to operate its casinos in Auckland, Hamilton and Queensland.
SkyCity shares fell more than 17 per cent to $1.79 in early trade on Monday after the company told shareholders that New Zealand’s Department of Internal Affairs had lodged an application with the Gambling Commission to suspend the licence – for an estimated period of 10 days – over allegations it did not comply with its license requirements.
SkyCity could temporarily lose its casino licence in NZ. Phil Carrick
“SkyCity will fully cooperate with the secretary in relation to the application and process,” the company said in a statement. “Given the application is before the Commission it would be inappropriate for SkyCity to comment further on the application and allegations at this stage.”
“SkyCity is committed to maintaining the highest standards of host responsibility best practice, with priority given to minimising the impacts associated with problem gambling as an area of primary focus.”
The company said the potential suspension would not impact non-gaming operations such as hotels and restaurants. A decision could take months.
Andy Bowley, head of research at Forsyth Barr, said a 10-day suspension could impact revenue by about $NZ13 million ($12 million) and EBITDA by $NZ7 million. “We believe SkyCity’s share price includes a material regulatory discount, including the prospect
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