New Zealand's SkyCity to settle Adelaide casino tax row (updated)

Skycity Entertainment

31/01/2025 06:27

(Updates with further details and background from paragraph 2
onwards)
       Jan 31 (Reuters) - New Zealand's SkyCity Entertainment
 SKC.NZ  said on Friday it will pay the South Australia Treasury
A$38.1 million ($23.7 million) to settle a dispute on its
Adelaide casino over the tax treatment of customer loyalty
points.       
    The case involved the interpretation of certain provisions
in the Adelaide Casino Duty Agreement 1999, especially the
treatment of loyalty points used in the casino's gaming
machines. 
    The South Australian Court of Appeal in the past ruled in
favour of the Treasury, resulting in SkyCity appealing the
decision to the high court. 
    SkyCity, however, lost that appeal and handed over A$10.3
million in additional casino duty to the state government. 
    The casino group said on Friday that its Adelaide business
will pay a further A$13.1 million in casino duty, A$24.8 million
in interest, and A$200,000 towards the Treasurer's costs. 
    The payment covers casino duty return periods from January
2014 to January 2024.
    Last year, SkyCity was asked to pay a A$67 million civil
penalty payment following a federal court finding that its
anti-money laundering and counter-terrorism financing programs
failed to meet legislative requirements.
        
  
    ($1 = 1.6082 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Sonia
Cheema)
 ((Tanishk.Kumar@thomsonreuters.com;))