Adelaide Casino
expansion unlikely says Sky City
There
will be no money invested in Adelaide Casino said Sky City
Entertainment Group Ltd. (SKC:NZ), New Zealand's largest casino
operator. Sky City chief executive Nigel Morrison told
shareholders that the high tax and over-regulation by the South
Australian Government are to blame for the lack of desire to
invest further into the casino. "There hasn't been any
dispensation for VIP gaming areas, for high roller areas, in
relation to smoking and certainly our main competitors around
Australia have that dispensation for VIP gaming clientele and
for international clientele, you know Asian high rollers and you
know we find that's a bit of a problem as well," Morrison
wrote in a letter to shareholders.
According to Sky City, its Adelaide
casino is the highest-taxed, monitored and regulated casino in
Australia, while the interstate casinos enjoy privileges, such
as exemption from smoking bans, to boost their popularity with
gambling high rollers. The gambling giant has already spent $23
million (USD) in recent years improving its performance, but
further expenditures are unlikely, unless changes are made by
the government.
Published on
07/14/2008
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