New Zealand-based SkyCity Entertainment could be about to sell off all or part of one of its Australian casinos as it looks for an investment partner to help rejuvenate its struggling Darwin casino.
SkyCity bought the Darwin casino from MGM Mirage in 2004 for $A195m. SkyCity’s Chief Executive, Graeme Stephens, who took the helm in April, said at the company’s annual meeting of shareholders that the casino had experienced ‘a tough year’ due to more competition from local gaming venues in the Northern Territory. He highlighted that the number of pokies local to the casino had increased by 75 per cent.
Mr. Stephens said: “Given, however, the regulatory changes I’ve referred to, SkyCity won’t entertain further development of Darwin on its own so we are conducting a strategic review of our options to create shareholder value. I have been asked whether a sale would be considered. This is obviously always a strategic option but we are not there yet.”