Skycity Entertainment Group

SkyCity Entertainment Group, also known as simply Skycity, is a gaming and entertainment company based in Auckland, New Zealand. It owns and operates five casino properties in New Zealand and Australia, which include a variety of restaurants and bars, two luxury hotels, convention centres, and Auckland's Sky Tower.

Skycity Entertainment Group Limited
Public
Traded asNZX: SKC
ASX: SKC
IndustryGaming & hospitality
Founded1996 (1996)
HeadquartersAuckland, New Zealand
Key people
Graeme Stephens (CEO)
Rob Hamilton (CFO)
ProductsCasinos & hotels
Websiteskycityentertainmentgroup.com

The company's shares are traded on both the Australian and New Zealand Stock Exchanges. Reported net profit after tax (NPAT) was $128.7 million, with the Group seeing revenue exceeding $1 billion for the first time in the company's history .

The group was established in 1996 as the owner of the Skycity Auckland complex. In 1998 it took over operations of the complex from Harrah's Entertainment.[1]

Skycity casinos often depend to a large degree on several hundred high-stakes gamblers, often from East Asia, who may gamble hundreds of thousands of dollars in one visit to a casino.[2]

History

Since opening its original Auckland casino on 2 February 1996, Skycity has expanded its operations to several New Zealand and Australian cities.

In June 2000, it bought the Adelaide Casino.[3] It added another casino to its portfolio when it opened Skycity Queenstown in the alpine resort of Queenstown. In July 2004 it bought the Darwin Casino and Hotel from MGM Mirage and rebranded it as Skycity Darwin. Then in June 2004 it acquired a 40.5% holding in the Christchurch Casino when it bought Aspinal Limited. The deal was opposed by Skyline Enterprises, the other owner of 41% stake, however, the purchase was approved by both the Casino Control Authority and the Commerce Commission.[4][5]

In 2001, Skycity bought a half share in cinema operator Force Corporation for $19.4 million, and rebranded it as SkyCity Leisure.[6]

In April 2016, longtime CEO Nigel Morrison stepped down as managing director and chief executive.[7] Graeme Stephens was appointed as Skycity's new chief executive in May 2017.[8]

On 21 May 2019, Skycity announced a long-term agreement with Malta-based Gaming Innovation Group (GiG) to supply technology for Skycity's new real-money online casino. The site, which will operate using GiG's Malta Gaming Authority online gambling license, plans to launch in the third quarter of 2019.[9]

In June 2019, SkyCity obtained governmental permission to buy a 1.01-hectare parcel of land in Queenstown to develop a new luxury hotel.[10][11]

As a result of the COVID-19 pandemic, Skycity announced 200 job losses in New Zealand on 3 April 2020,[12] and a further 700 redundancies a month later, on 11 May.[13]

Properties

The Skycity group owns five casinos in Australia and New Zealand: Skycity Auckland, Skycity Hamilton, Skycity Queenstown, Skycity Wharf Casino, and Adelaide Casino.

Adelaide

Adelaide Casino was bought by Skycity Entertainment Group in June 2000. It has 90 gaming tables and 990 gaming machines. It has the only table gaming licence issued out by the South Australian Government, giving it a monopoly over the gambling business in the state.[14]

Auckland

Skycity Auckland is New Zealand's largest casino. Located in Central Auckland, it provides table and slot machine gaming, with 1647 gaming machines and 110 gaming tables. The facility includes the 328-metre (1,076 ft) Sky Tower, two hotels, convention centre, a 700-seat theatre, and more than 20 restaurants and bars with regular live bands, DJs and other entertainment. It opened on 2 February 1996. In 2013 Skycity announced it will open a new convention centre catering for up to 3500 guests, costing $402 million.[15]

Skycity Hotel, Auckland is a four-star casino hotel. It is one of New Zealand's busiest hotels and is located inside the main Auckland complex. It serves mainly families, business people and casino customers. It offers 323 rooms, which were refurbished in 2013.[16]

Skycity Grand Hotel is a luxury five-star hotel and was officially opened by Prime Minister Helen Clark in April 2005. It is not located inside the main complex but is adjacent and is connected by an "Air Bridge". It serves VIPs, business people and high stake gamblers who play at the casino. The Grand features 21 floors and 316 rooms. The rooms comprise The Grand Suite, 8 Self Contained Suites, 11 King Suites and 296 rooms. Facilities and services include 24-hour room service and reception, a swimming pool, fitness center with personal trainers, sauna, health spa, baby sitting and a hotel doctor.[17]

On 22 October 2019 the new Convention Centre located in Auckland CBD caught fire while still under construction.[18]

Hamilton

Skycity Hamilton is a casino in Hamilton, New Zealand, that opened in September 2002.[19] It has 339 gaming machines and 23 tables, a restaurant and a bar, with live music and other performers on Friday and Saturday nights. It is part of the Riverside Centre on the Waikato River, which includes bars, restaurants and ten-pin bowling all operated by Skycity Hamilton.

Queenstown

Skycity Queenstown opened in December 2000. It has 86 gaming machines and 12 gaming tables.[20]

The Skycity Wharf Casino, located in the Steamer Wharf complex a short distance from Skycity Queenstown, has 74 gaming machines and 6 gaming tables. It was bought by Skycity in 2013.[21][22]

Former properties

Darwin

Skycity Darwin, previously known as the MGM Grand Darwin, was the only casino in Darwin, the capital of the Northern Territory, Australia. Skycity bought the casino, including a 5 star hotel, from MGM Mirage on 23 June 2004 for US$140 million. Skycity Darwin housed 700 gaming machines and 40 gaming tables.

Skycity sold the Darwin property to American company Delaware North in November 2018 for $188 million and it was subsequently renamed as Mindil Beach Casino & Resort.[23][24]

See also

References
  1. "US gambling giant linked to SkyCity". The Dominion Post. 26 September 2007.
  2. Hembry, Owen (1 March 2007). "SkyCity hit as luck changes for VIPs". The New Zealand Herald. Retrieved 12 November 2011.
  3. "SkyCity share price soars on takeover approach". abc.net.au. 21 September 2007.
  4. "SkyCity Completes Casino Deal". au.news.yahoo.com. 28 June 2004. Archived from the original on 5 August 2004.
  5. "Sky City pays $93.8m for Aspinall stake in Christchurch Casino". nzherald.co.nz. 5 April 2004.
  6. "Davies to head Force Corporation". NZ Herald. 4 April 2001.
  7. "SkyCity chief executive Nigel Morrison resigns". NBR. 7 April 2016.
  8. "SKYCITY welcomes new CEO Graeme Stephens with traditional Maori cultural ceremony". SkyCity Entertainment Group. 3 May 2017.
  9. Rowe, Don (22 May 2019). "SkyCity ignores government, signs deal to open online casino". The Spinoff. Retrieved 22 May 2019.
  10. "SkyCity granted approval to buy land for new five-star Queenstown hotel". asgam.com. 7 June 2019.
  11. "SkyCity's Queenstown problem unresolved despite land purchase". agbrief.com. 13 June 2019.
  12. "Covid 19 coronavirus: SkyCity axes 200 jobs". The New Zealand Herald. 3 April 2020. Retrieved 11 May 2020.
  13. "Covid 19 Coronavirus: SkyCity plans to shed another 700 staff". The New Zealand Herald. 11 May 2020. Retrieved 11 May 2020.
  14. The Office of the Liquor and Gambling Commissioner. "Casino Frequently Asked questions". olgc.sa.gov.au. Archived from the original on 17 February 2011. Retrieved 16 July 2010.
  15. "Govt confirms $402M convention centre deal". 3 News NZ. 13 May 2013.
  16. "SkyCity Hotel official site".
  17. "SkyCity Grand Hotel official site".
  18. "Auckland's SkyCity Convention Centre fire: Firefighter in serious condition as building goes up in flames". Stuff. 22 October 2019.
  19. "SKYCITY ENTERTAINMENT GROUP LIMITED - Interim Result Half Year Ended 31 December 2003" (PDF). Skycity Entertainment Group.
  20. "Our Business". SkyCity Entertainment Group. Retrieved 13 April 2019.
  21. "SkyCity buys Wharf Casino". odt.co.nz. 20 May 2013.
  22. "SkyCity to buy Queenstown casino from Lasseters". agbrief. 24 May 2013.
  23. "Darwin's SkyCity Casino sold to America's Delaware North". abc.net.au. 8 November 2018.
  24. "Blast from the past: Darwin Skycity Casino's new name revealed". NT News. 27 March 2019.
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