SkyCity Entertainment Group has further increased its
interest in Queenstown, buying Otago Casinos Ltd, which holds
the licence for Wharf Casino.
SkyCity chief executive Nigel Morrison said the company had
acquired the casino for $5 million, subject to regulatory
approval from the Commerce and Gambling commissions.
The casino is located in the Steamer Wharf complex on the
Its licence allows for a maximum of 74 electronic gaming
machines and six gaming tables.
The Companies Office showed Otago Casinos Ltd was 100% owned
by Lasseters (NZ) Ltd and was formed in February 1997.
Financial statements for the year ended June 30, 2012, showed
it had total revenue of $3,178,403, comprising gaming revenue
of about $2.08 million and bar revenue of about $1.1 million,
but made a loss of $412,346. It spent $2,979,432 in ''other
expenses'', which included $1,578,625 in staff salaries and
wages and $375,063 in the rental and operating lease cost.
Its financial report said its ability to operate as a going
concern depended on its ability to raise additional funds
from shareholders or external sources. Mr Morrison said
buying the casino was part of SkyCity's ''strategy of
increasing ourpresence in Queenstown''.
Late last year, the company assumed full ownership of SkyCity
Queenstown Casino and it is part of a consortium that is the
preferred group to build the proposed Queenstown Convention
''SkyCity sees Queenstown as an area of significant potential
for continued tourism development and as one of New Zealand's
leading tourism operators, we are very interested in the
region,'' Mr Morrison said.
''We are looking forward to developing our business in this
iconic region of New Zealand and contributing further to the
Last week, SkyCity Entertainment Group announced it had
signed a heads of agreement with the Government to design,
build and operate the New Zealand International Convention
Under the agreement, SkyCity will commit $315 million to
build the centre and fit it out, and contribute the 14,000sq
m site in the Auckland CBD, valued at $87 million.
In return, the Government extended the Auckland Casino venue
licence to 2048 and agreed to a package of regulatory