SkyCity Entertainment Group has insisted that updated assumptions regarding the introduction of mandatory carded play at its Adelaide casino will not affect its full-year adjusted EBITDA.
The casino operator said it expects to impair its Adelaide assets by AU$86.2m (NZ$94.3m) to reflect updated assumptions concerning the 2026 introduction of mandatory carded play at its Adelaide casino.
Additional legal and compliance costs associated with SkyCity’s anti-money laundering and counter-terrorist financing responsibility uplift programmes will also be a key driver in the reduction in future cashflows compared to previous guidance.
“SkyCity is committed to implementing mandatory carded play across its casinos as this will significantly increase its visibility and control of customer play, and simplify many parts of its current AML/CTF and host responsibility operations,” SkyCity said.
“The primary objective over the coming years is to ensure SkyCity has strongly performing risk management systems, a culture which prioritises compliance with SkyCity’s obligations and customer care, and a business which is seen as a good corporate citizen, worthy of retaining its casino licences.”
SkyCity CEO Jason Walbridge said: “The impairment is a non-cash accounting adjustment at balance date. SkyCity Adelaide continues to be a strategically important asset within the wider SkyCity Group.”
The company also expects a tax adjustment of NZ$129.6m following recent changes to New Zealand’s tax legislation.
In March, the government removed the ability for owners to depreciate commercial buildings with an estimated useful life of 50 years or more for tax purposes.
SkyCity is set to release its full-year results up to the end of June this year on Thursday.
