SkyCity says tax changes justify Adelaide investment

    SkyCity Entertainment said in an investor presentation that recent regulatory and tax changes that came into effect in February this year justify the company’s significant investment in its Adelaide casino. SkyCity is currently working on a $345 million three-phase expansion plan. Stage One, which included a new Baccarat precinct, with an Asian pavillion and a Platinum room, containing EGMs, is now complete. Stage two involves a section targeting the premium mass market and is now nearing completion, while stage three, which involves a VIP EGM gaming room and high-end restaurants will begin construction shortly. “As a consequence of the introduction of new Gaming Tax rates and the change in the mix of EGMs, the average EGM Gaming Tax rate has fallen from 43.5 percent in FY 2013 to about 38 percent,” the company said. However, SkyCity warned that the significant restructuring work has had an impact on EGM and food and beverage revenue in the first half and the introduction of more premium gaming has increased operating costs.