SkyCity granted leave to appeal in casino duty dispute, adjusts annual guidance

SkyCity Entertainment Group has received special leave to appeal a decision by the South Australian Court of Appeal regarding the calculation of casino duty at SkyCity Adelaide. The dispute centers around the interpretation of provisions in the Adelaide Casino Duty Agreement, specifically related to loyalty points converted for gaming machine play.

The High Court of Australia has granted SkyCity Adelaide the opportunity to present its case, with a full hearing expected later this year. The ruling could either support the Court of Appeal’s decision or favor SkyCity Adelaide’s proposed interpretation of the Agreement.

In other news, SkyCity Entertainment Group has revised its financial forecast for FY24, expecting lower EBITDA and NPAT figures due to challenges in the economic environment affecting customer spending. The delayed opening of the Horizon Hotel in Auckland and potential increased casino duty expenses in Adelaide also contribute to the adjusted guidance.

Despite these challenges, visitation numbers at SkyCity sites remain strong, and the company anticipates releasing its full-year results on 22 August 2024. Additionally, SkyCity’s recent agreement with AUSTRAC to pay a AU$67m fine for breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 will be reviewed by the Federal Court of Australia.

Stay tuned for updates on SkyCity’s appeal and financial performance as developments unfold in the coming months.