New Zealand-based casino operator SkyCity is making plans to open up a second casino in Adelaide. To determine the best course of casino, the gaming firm has assessed the performance of its existing Adelaide operation – and has uncovered some disappointing results.

This week, SkyCity released the findings from its performance assessment, which concluded that the existing SkyCity Adelaide casino is inferior, uncompetitive and inefficient. While the results are damning, they provide adequate guidance so that the casino operator can improve on its failures when developing Adelaide’s second casino.

According to the report, SkyCity Adelaide’s poor performance can be attributed to South Australia’s restrictive gambling laws. In the state, casinos must adhere to strict laws, including a $10 limit on maximum wagers and a cash-only gambling system. The local government also requires the casino to pay a tax worth 43% of all revenue, which is the highest gaming tax rate in the country.

There are several other non-legislative issues that have contributed to the casino’s poor performance, including the overall design. The report notes that the venue is a non-purpose built casino with low ceilings and a poor layout. The casino also suffers from its location in an underdeveloped area and without any transit links to the Adelaide Oval.

“Without legislative and regulatory reform, it was not economically viable for SKYCITY to invest the capital in the Adelaide Casino to transform it into an integrated casino entertainment complex,” reads the report. To rectify these issues and ensure that SkyCity’s new casino thrives, the operator has negotiated a new licencing agreement and casino duty agreement with the South Australian government.

As part of the new deal, the casino will be able to offer cashless (ticket-in ticket-out) gambling which could help to increase profits. The casino will also remove the $10 bet limit and increase the number of pokies from 995 to 1500. Additionally, the tax has been reduced from 43% to 20%. SkyCity will soon begin construction on its new casino in Adelaide.

The company estimates that the project will be completed by the end of 2016.

About the Author

George Anderson
Author George, has over 25+ years’ experience in the Pokies and Casinos industry throughout Australia and New Zealand. Loves to research new Pokies games on the block and follows announcements from top industry providers about their upcoming releases. As soon as a new interesting pokie game appears on his radar, George is there to check it out and give you the scoop before anyone else and tell you about all casino sites where can play the latest game. Before this gig, George worked as Pokie game tester, making him an ideal candidate for this genre of work. He is also an animal lover and a proud owner of three dogs.