In Auckland, city councillors have traded off the $350 million construction of a new convention centre for 500 new pokies at Sky City Auckland. The deal has upset many local residents, but Sky City is none too concerned, as the casino operator will be making a pretty penny by building the centre.
It may have seemed like an unfair trade-off, spending $350 million in return for a few new pokie machines, but a recent report sheds some light on this issue. According to Goldman Sachs, the new pokies machines will actually pay off the cost of the new convention in as little as 5 years!
The report states that each machine will generate $143 000 worth of revenue for the casino each year, which equals more than $70 million total. As such, it is expected that Sky City Auckland will be able to cover the cost of the new convention within 5 years. So, things certainly work out in favour for the casino operator.
Most residents are not pleased with the news, but city councillors reassure residents that steps are being taken to ensure that residents do not fall victim to problem gambling. However, citizens following the story closely do not seem to be convinced.