Photo: RNZ / Marika Khabazi
- SkyCity to pay $42m back tax and interest to South Australian govt
- Settles long running tax dispute over Adelaide casino
- Latest of company's major issues with NZ/Aust regulators
- SkyCity still faces broader South Australian state inquiry
Casino company SkyCity Entertainment has settled a long running tax dispute with the South Australian government at a cost of A$38.1m (NZ$42m).
The company said it had accepted an offer from the state government to settle about the tax treatment of gaming loyalty points at its Adelaide casino.
"This has been a long running matter involving highly technical tax issues regarding the calculation of casino duty and interpretation of the Agreement," chief executive Jason Walbridge said.
The High Court of Australia ruled against SkyCity last October, after the company and tax officials asked for a declaratory judgement on the interpretation of the tax rules.
SkyCity already provided A$10.3m (NZ$11.3m) in its 2024 accounts for the issue, although the final settlement would be too late to be included in the half year earnings report on 20 February.
The company would keep working with South Australian revenue officials, Walbridge said, to ensure a "co-operative and constructive" relationship.
SkyCity chief executive Jason Walbridge Photo: Supplied/ SkyCity
SkyCity still faces a broader inquiry by the South Australian government on whether it was fit to hold a casino licence.
The company has been hit with large penalties on both sides of the Tasman for failing to meet its regulatory obligations under harm minimisation and anti-money laundering rules (AML/CFT), as well as a five day shutdown of the flagship Auckland casino.
It has suspended dividends as it preserved its finances to upgrade its systems and to counter the economic downturn which hit gaming revenue.
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