AUSTRALASIA 34
new zealand
SkyCity battles through adversity Covid-19 is testing the mettle of global casino managers like no other crisis, requiring quick thinking and flexibility. But if there’s one team that’s been tested more than most, it’s the personnel at New Zealand’s SkyCity Entertainment.
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n its latest financial year, the operator years having disappeared. was forced to handle the fallout from “Our domestic businesses have recovered a massive fire at its flagship develop- more quickly than anticipated when open ment in Auckland in October last year, and, if we can sustain this, the business is with the coronavirus pandemic shuttering not under threat and can wait it out until its casinos across the country a few short the world recovers,” he said. months later. On the upside, SkyCity has seen strong The government of Prime Minister growth in its online business, which it Jacinda Ardern won widespread praise for launched last year. The unit operates out of its handling of the crisis, seemingly having Malta, with content and the gaming platform eliminated new infections and allowing provided by Gaming Innovation Group. SkyCity to become one of the first operators Under current New Zealand law, only to reopen its doors. Government-owned Lotto and the TAB are However, it’s been a roller coaster permitted to offer online gaming from within and after more than New Zealand, however 100 days with no new many New Zealanders cases, Auckland saw a freely participate in On the fresh outbreak, pushing online casinos provided the casinos back into by offshore operators. upside, SkyCity lockdown from August These sites are estimated has seen strong 12th to 30th. to generate revenue of growth in its “An unprecedented about $160 million number of significant from the country. online business, strategic decisions and Stephens said the which it launched actions have had to be business had ramped up taken to mitigate the significantly from March last year. impacts of these events,” this year and was now CEO Graeme Stephens a profitable operation said in the company’s with more than 35,000 annual report. “Significant operational customer registrations. effort has gone into closing and reopening “We continue to prepare for a regulated our properties with rigorous health and online industry in New Zealand and are safety measures in place.” supportive of Government initiatives in Chief among those was the need to this regard.” reduce its workforce by about 25 percent to In the meantime, SkyCity is continuing reflect the new reality facing the business. with its current expansion projects, which it With the international borders still says are on budget and on time. This includes closed, Stephens acknowledges that for the the expansion of SkyCity Adelaide and Eos short-to-medium term SkyCity is going to by SkyCity, a new 120-room luxury hotel, be a smaller, domestically focused business, which is still scheduled to open later this year. with its international VIP segment, a sigIn Auckland, work has resumed on the nificant contributor to earnings in recent fire damaged New Zealand International
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Asia Gaming Briefings | September 2020
