NZ's SkyCity to take $57 million charge on Adelaide assets (updated)

Skycity Entertainment

18/08/2024 22:52

(Adds details on impairment, background after first paragraph)
       Aug 19 (Reuters) - 
    New Zealand casino operator SkyCity Entertainment  SKC.NZ 
warned on Monday of an estimated A$86.2 million ($57.44 million)
impairment charge on its Adelaide assets, citing costs to
implement a rule on mandatory identity-based play.
  
        Mandatory carded play requires the casino to ensure all
bets in electronic gaming machines are linked to the customer's
identity to prevent money laundering and terrorism financing
(AML/CTF).
  
        The charge covers implementation costs at the Adelaide
casino in 2026, and other additional legal and compliance
expenses, it said in a statement.
  
        SkyCity has faced several regulatory probes and fines in
New Zealand and Australia recently after systematic failures in
its AML-CTF compliance forced the gambling area of its Auckland
casino to close for 
    five straight days
     in September.
  
        "The primary objective over the coming years is to
ensure SkyCity has strongly performing risk management systems,
a culture which prioritises compliance with SkyCity's
obligations and customer care," the company said on Monday.
  
        SkyCity also flagged a tax adjustment of NZ$129.6
million following recent changes to tax legislation in New
Zealand.
  

($1 = 1.5006 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru
Editing by Chris Reese and Richard Chang)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar;))