SKYCITY to Sell Darwin Casino to Recoup Its Gambling Business

SKYCITY DarwinThe leading casino operator and hotel based in New Zealand, SKYCITY Entertainment Group, is making plans to sell its gaming arm at their Darwin hotel and casino resort in an endeavour to recoup the gambling business.

For a long time, the Darwin casino has been struggling a lot and unable to generate revenues for the parent casino operator.

As per National Business Review of New Zealand, SkyCity Entertainment Group might be looking for a partner to develop its underperforming assets.

The Skycity Darwin hotel and casino resort complex is based in Darwin City in the northern territory of Western Australia. It comprises of a 5-star hotel and a casino with tables and gaming machines with a plethora of entertainment as well as accommodation choices.

It is spread across a sprawling area and was purchased by SkyCity Entertainment Group 3 years ago in 2014 from MGM Resorts by paying a whopping sum of A$ 195 million.

SKYCITYDarwin

The Darwin Casino was unable to live up to the expectations of the casino operator and failed miserably. There has been an unexpected fall in the revenue since its acquisition. Skycity thinks that rise in pokie machines in pubs and clubs surrounding the resort may be one of the primary reasons for the failure of the casino. It may be possible that Darwin casino underperformance is attributed to easy access to pokie machines in the vicinity.

The reports show that the number of individuals playing pokie machine is on the rise since 2015 and the increase is primarily because of regulatory gaming modifications in the Northern Territory. The casino operator has decided to appoint Graeme Stephens as the new Chief Executive Officer in November 2016, and one of his primary duties was to look into the rise of pokie machines and its overall impact on Darwin casino.

He assumed his role in May this year, and the company is looking forward to selling its gaming arm and teaming with a business partner. An undeveloped land surrounding the Darwin resort is owned by SkyCity, and the area can be used in collaboration with a partner for future development.

The CEO of Skycity, Graeme Stephens made the following statement:

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.

He went on to say that while a sale of the non-performing asset was always an option, the company had not come to any decision.”

There is news going on the internet that the gambling arm of Skycity called Darwin is up for a potential sale during the financial year 2017. This casino operator owns some different properties in Adelaide of Australia; Queenstown and Hamilton of New Zealand.

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SKYCITY to Sell Darwin Casino to Recoup Its Gambling Business
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SKYCITY to Sell Darwin Casino to Recoup Its Gambling Business
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SKYCITY may have to consider selling their gaming arm at their Darwin Hotel and casino resort as the part of an attempt to recoup their gambling business.
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Top10-CasinoSites.net
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Jay Stevens

Jay Stevens

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