SkyCity Entertainment Group will pay the South Australian government a total of AU$38.1 million (US$23.3 million) to resolve a long-running dispute over the treatment of loyalty points converted to gaming machine play for the purpose of calculating casino duty at the SkyCity Adelaide casino.
The hefty amount includes the payment of AU$13.1 million (US$8.0 million) in additional casino duty and AU$24.8 million (US$15.2 million) in interest, encompassing casino duty return periods from January 2014 to January 2024.
In a statement, SkyCity said the agreement brings to an end the long running contractual dispute between the parties that resulted in them becoming involved in legal proceedings.
“This has been a long running matter involving highly technical tax issues regarding the calculation of casino duty and the interpretation of the agreement,” said SkyCity CEO Jason Walbridge. “SkyCity is pleased the matter has been resolved and will continue to work with RevenueSA to ensure a cooperative and constructive relationship.”
The two parties expect to finalize a settlement agreement reflecting the offer accepted by SkyCity Adelaide shortly, the company added.
While that matter is finally resolved, it represents yet another financial setback for the New Zealand-based casino operator which last year impaired its SkyCity Adelaide assets to the tune of AU$86.2 million (US$57.5 million) – a response to assumptions related to the introduction of mandatory carded play at the SkyCity Adelaide casino in 2026, as well as additional legal and compliance costs associated with SkyCity Adelaide’s uplift programs.
The company also recorded a tax adjustment of NZ$129.6 million (US$78.4 million) following recent changes to New Zealand tax legislation that no longer allow owners to depreciate commercial buildings with an estimated useful life of 50 years or more for tax purposes.
The company previously reached an AU$67 million (US$45 million) agreement with Australian anti-money laundering watchdog AUSTRAC for historical AML failures at SkyCity Adelaide, as well as an agreement with New Zealand’s Department of Internal Affairs to pay a civil penalty of NZ$4.16 million (US$2.54 million) for historic breaches of the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
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