8 Nov 2018

SkyCity sells Darwin casino business for $201 million

2:31 pm on 8 November 2018

SkyCity Entertainment Group has sold its casino business in Darwin for $A188 million ($NZ201 million) - about $A8m more than its book value.

SkyCity signage

Photo: RNZ / Cole Eastham-Farrelly

The entertainment and gaming company will continue to operate the business until the sale to the United States-based hospitality company Delaware North was finalised.

SkyCity will also retain the right to access the VIP facilities at the casino for at least two years after completion of the sale, which was subject to regulatory approvals.

SkyCity and Delaware also planned to work together to develop an online gaming venture in Northern Australia, as Australian regulations were expected to be changed to permit online gaming.

"We see both International Business and the online space as future growth areas for us, so we see value in this outcome,'' said SkyCity chief executive Graeme Stephens.

He said the sale allowed SkyCity to focus on the $A330m expansion of the Adelaide casino, which was due for completion in 2020.

The Darwin deal does not include an adjacent property, with a book value of $A11m, which would be sold separately.

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