SkyCity to temporarily close Auckland casino's gambling area; takes outlook hit (updated)

Skycity Entertainment

17/07/2024 22:09

(Adds details in paragraph 2-6)
       July 18 (Reuters) - 
    SkyCity Entertainment  SKC.NZ  said on Thursday it will be
closing the gambling area of its Auckland casino for five
straight days to settle a suspension application and would take
hit in earnings for fiscal 2025 due to it. 
  
        In September 2023, the 
    Secretary of Internal Affairs filed
     an application against the New-Zealand based casino
operator to the country's gambling commission to suspend the
licenses of three casinos for a period of up to 10 days.
  
        The casino operator added that it would only proceed
with the closure of the gambling area if the commission agrees
to withdraw the suspension application. 
  
        SkyCity also lowered its earnings view for 2025,
expecting a hit of around NZ$5 million ($3.04 million) from the
five-day closure. 
  
        The firm expects to report underlying earnings before
interest, taxes, depreciation, and amortization in the range of
NZ$245 million to NZ$265 million. 
  
        The embattled casino operator has been hit by a number
of civil proceedings to resolve anti-money laundering 
    cases in the recent past. 
        
  
    
($1 = 1.6445 New Zealand dollars)

 (Reporting by Rajasik Mukherjee; Editing by Alan Barona)
 ((Rajasik.Mukherjee@thomsonreuters.com;))