SkyCity says Northern Territory gaming tax changes to cost $1m

New Zealand-listed SkyCity Entertainment says the impact of a new Community Benefit Levy and tax changes in Australia’s Northern Territories will push up operating costs by about $1 million ($669,404.979) a year, less than the $6 million it originally estimated.

The company said the Northern Territory Government has said that for the ten-year period from 1 July 2015 to 30 June 2025, tax on electronic gaming machines (EGMs) will be 15 percent of gross profits;  table games will be 9.09 percent of gross profits; and  NT Keno and in-house Keno 10 percent of gross profits.

In addition, for commission play as part of SkyCity’s International Business in Darwin, the tax rate will remain at the Australian GST rate equivalent to 9.09 percent of gross profits.

The gaming tax review followed the introduction of a new Community Benefit Levy (CBL) for casinos in the Northern Territory of 10 percent of the gross profits of EGMs, which applies from July 1st.