New Zealand and Australia gaming operator SkyCity Entertainment Group Limited has announced the resolution of a protracted contractual dispute with the South Australian Treasurer concerning the calculation of casino duty related to loyalty points converted into gaming machine play at its Adelaide casino.
This resolution brings an end to the associated legal proceedings that have persisted for several years.
SkyCity Adelaide Pty Limited accepted an offer from the Treasurer that requires the company to pay a total of AU$38.1 million ($23.6 million).
This payment includes AU$13.1 million ($8.1 million) in additional casino duty, AU$24.8 million ($15.4 million) in interest, and AU$200,000 ($124,000) to cover the Treasurer’s legal costs.
The financial settlement encompasses casino duty return periods from January 2014 to January 2024.
Jason Walbridge, Chief Executive Officer of SkyCity, expressed satisfaction with the resolution, stating, that “this has been a long-running matter involving highly technical tax issues regarding the calculation of casino duty and the interpretation of the Agreement”.
“SkyCity is pleased the matter has been resolved and will continue to work with RevenueSA to ensure a cooperative and constructive relationship”, he added.
The parties are expected to finalize a settlement agreement that reflects the terms of the accepted offer in the near future.
An independent review into SkyCity Adelaide was initiated in June of 2024 after Australian courts approved the AU$67 million ($44.6 million) penalty laid out by Australia’s financial watchdog, and is expected to be completed by the end of May 2025.