StockTalk

Seems pretty serious to me - but the share price hrdly moved, down 4c at $2.65

https://www.abc.net.au/news/2022-12-07/skycity-adelaide-casino-allegations-detailed-in-court-documents/101745798

Cash that was dirty and appeared to have been buried, and money kept in plastic bags, was used in large transactions at the SkyCity Adelaide (SCA) casino, according to court documents.

The allegations are contained in documents submitted to the Federal Court as part of civil proceedings against the casino operator by Australia's financial crimes watchdog.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has launched the action for alleged serious and systemic non-compliance with Australia's anti-money laundering and counterterrorism financing laws.

The watchdog began investigating the casino last year as part of an industry-wide compliance program.

The court documents state SkyCity "failed to carry out due diligence on 124 customers", a breach of laws that could result in fines of more than $2 billion

The documents state that the casino recorded $4 billion in combined turnover from those customers from December 2016, with about $74 million in losses by the customers.

'Soiled with a strong aroma of dirt'
The documents also contain details about "customer 30", who allegedly told the casino they worked as a chef at a small restaurant, their primary source of funds.

That customer turned over more than $34 million in four years.

"Customer 30's family network included individuals that had been convicted of drug dealing," the court documents allege.

"On several occasions Customer 30's known associates had presented cash that was soiled with a strong aroma of dirt.

"Customer 30 then received chips from these associates after the cash exchange."  etc...etc...

Quote from: kiwi2007 on Dec 08, 2022, 01:40 PMSeems pretty serious to me - but the share price hrdly moved, down 4c at $2.65

https://www.abc.net.au/news/2022-12-07/skycity-adelaide-casino-allegations-detailed-in-court-documents/101745798

Cash that was dirty and appeared to have been buried, and money kept in plastic bags, was used in large transactions at the SkyCity Adelaide (SCA) casino, according to court documents.

The allegations are contained in documents submitted to the Federal Court as part of civil proceedings against the casino operator by Australia's financial crimes watchdog.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has launched the action for alleged serious and systemic non-compliance with Australia's anti-money laundering and counterterrorism financing laws.

The watchdog began investigating the casino last year as part of an industry-wide compliance program.

The court documents state SkyCity "failed to carry out due diligence on 124 customers", a breach of laws that could result in fines of more than $2 billion

The documents state that the casino recorded $4 billion in combined turnover from those customers from December 2016, with about $74 million in losses by the customers.

'Soiled with a strong aroma of dirt'
The documents also contain details about "customer 30", who allegedly told the casino they worked as a chef at a small restaurant, their primary source of funds.

That customer turned over more than $34 million in four years.

"Customer 30's family network included individuals that had been convicted of drug dealing," the court documents allege.

"On several occasions Customer 30's known associates had presented cash that was soiled with a strong aroma of dirt.

"Customer 30 then received chips from these associates after the cash exchange."  etc...etc...

Odds are that NZ sites do much the same thing ..But no worries as Jan Tinetti says 'no cause for concern'

Fine should be less than NZ$100m so only about 10cps = one lost half-year dividend in a normal year.

Another consideration is the ethical question of whether you really want gambling stocks in yr portfolio.

Just saying.

Plenty of drug money being laundered at other SKC casinos in my opinion.
I've personally observed on many occasions very ordinary people pumping through tens of thousands at the tables and losing a lot of it and not looking perturbed at all.
Either those people are fabulously wealthy or its dirty money, (my money is on the latter)
My father used to say those places are dens of iniquity.
In regard to SKC's conduct at Adelaide...there's always more than one cockroach.
Reputational risk right across the group.
Julian Cook as Chairman needs to start ratting people's cages.

imagine the money washed in loss vagas.....

Oceans of it!!!

https://www.youtube.com/watch?v=GKCJkMCbmoc

MorningStar giving SKC a puff this morning.

Forecast 17c then 21c EPS next two years.
With 100% imputed divis of 13c and 15c.

"SkyCity Looks Cheap Despite Adelaide Inquiry

Shares in SkyCity continue to screen undervalued compared with our unchanged NZD 3.80 fair value estimate. ... Long-dated and exclusive licences in Auckland and Adelaide create regulatory barriers to entry, underpinning SkyCity's narrow economic moat, positioning the business well to participate in the recovery of New Zealand tourism. Managing to avoid the reputational damage that has marred Star and Crown thus far, we think SkyCity has quietly bolstered its own compliance monitoring on the back of highlighted shortcomings at its larger Australian peers, placing the casino in a good position to ultimately prove suitability."

I don't hold yet but am watching closely. Price today $2.41 - forecast $3.80

Could be a real Steal at 1.40 .....

Steal? oh dear reminds one of the Aussi banking sector crisis ......

which was headed by a knighted   Kiwi

cant understand why this hasnt hit sub 2 yet....

no one seems to rushing to the doors yet. DO the investors expect SKY auckland to be the big dollar earner going forward.

no doubt auckland in 10 years time could be the new wild west? martial law next? deploy armoured from Army?
 

O M G - they are paying a dividend...extraordinary..

maybe they should have developed more hotels as Helium balloons are back?

grand touring the pacific in a strange odd shaped balloon is back in fashion... just make sure you log your flight plans with NORAD...

be safe people and be sensible.....

Could be a bargain in SIN CITY...

surely inflation has hit this sector and horse racing and those long legged dogs ay Winner()?

https://www.stuff.co.nz/business/131367472/gaming-machine-profit-surpasses-1b-for-the-first-time-in-nearly-20-years

Quote from: Waltzing on Mar 01, 2023, 03:18 PMCould be a bargain in SIN CITY...

surely inflation has hit this sector and horse racing and those long legged dogs ay Winner()?

https://www.stuff.co.nz/business/131367472/gaming-machine-profit-surpasses-1b-for-the-first-time-in-nearly-20-years

Hey waltz ....my long legged dog's nephew just won the The Fastest Couch Potato Sprint

Cool eh

Had no idea they had a Couch sprint for grey hounds.....

completely flab garsted...

???

24/5/23 Trading update:

o the Group revenue trend reflects some uplift from the New Zealand tourism
recovery, partially offset by the negative impact on trading from recent
weather events in Auckland;
o electronic gaming machine performance continues to be strong, while table
games remain subdued across all properties;
o the Group is experiencing higher legal and compliance costs, partially as a
result of increased resource and capacity around anti-money laundering and
harm minimisation;
o the termination of the Auckland Carpark Concession Agreement remains
ongoing, with settlement expected to slip to FY24; and
o the FY23 normalised EBITDA(1) guidance range has been updated to $300m -
$310m, excluding carpark earnings.

----------------

Morningstar followed up with unchanged forecast for EPS and DIV
Forecast 17c then 21c EPS next two years.
With 100% imputed divs of 13c and 15c.
MorningStar Valuation: $3.80 ($2.27 close 26/5/23)
https://online.asb.co.nz/ost/D04FC813FC752BB529D8528FA29ACB83/quotesummary/index/nzx/skc?tab=6

------------

There has been, and still is, a massive drop in Chinese tourists both to Aus and NZ.

In Australia, they are feeling left out of inbound travellers from China. There were 26,810 short-term visitors from China in March compared to 124,370 in March 2019. This semi-official snub has a flow-on impact on New Zealand where only 7119 short-term visitors from China arrived here compared to 41,063 in March 2019. China may be punishing Australia, but we get blowback too. - www.interest.co.nz

dont know if we are allowed to talk about that stock its considered worse than talking about ESG...

in Japan off topic EGS is almost built into the DNA of some of the younger generation which is what BP is on about...

but the pollution from the multi colored hair cuts is most concerning to GIHA.

Heck we have some rebalancing to do if the valuation is right...

NO NO we do not BUY that SHARE!!!

https://www.youtube.com/watch?v=_aGbdni7QNs

SKY CITY update ....
 
 appoint someone to have a look around the place ... have a few drinks at the bar and come back saying ...  boy that game was  a cracker. Wow that screen is BIG!!!!

mst be a huge fine coming surely ...

https://www.nzx.com/announcements/412147

cant see any gang bikes in the car park ...standard of dress needs to go up a bit as the punters from china dressed better.

big ton fine coming according foo BAAARS... says balance..

that could hit the DIV and make the stock a STEAL...

but wait it already is... where is crime AUS INC going to strike next .... they must be running out of places to wash it all..

They will probably line up the best legal team they can find ....

if change of government coming ACT will insist they limit internal affairs operations and knee cap the secretary...

like in the racing industry there is alway a fuss and then the knight hoods continue...

Imagine how many IWI would love to own that license...

You watch but they will fight it and it they continue to then a bargain will emerge as tourism picks up to full steam in the next 5 to 10 years...

Big legal and major expenses might be required in the mean time... Suspend DIV entirely possible but doubt it...

This customer wants some money back... internal affairs has been infiltrated by IWI and they want the license...

Someone at SKC board and C suite will have to walk the plank for this one and the Aussie one ...

Some Big Bucks changing hands in fines coming ...

Imagine "I was allowed to gamble for to long and now i want to my money back"

Thats like saying the stock market made me do it ...

These are the same government departments that waste tax payer money all over the place and steal billions of dollars of rate payer assets...

Pot calling the kettle black ...

Will SKC sue the department when its all done and dusted?

Salt management questions the motives of the DIA...

SKC brings in high tech software to track customers in the casino's ...

This has a lot of moving parts ..

https://www.nzherald.co.nz/business/...JWH5RKAN4GDKU/

Needs to be renamed.  SINCITY...ticker code SIN.

Gambling also covers Horse racing and other forms of betting along with sports...

If this thing hit 150 and below at some point and they keep the license after the minister tries to pass it on to IWI then its a Buy ...

Big profits to be made for sure even with the china boys and girls locked up at home..

I'm no fan of ESG but I draw the line at SIN stocks.  I'm not comfortable making money by owning shares in a company that exploits vulnerable people with addiction issues, especially one that only pays lip service to harm minimisation.  Doesn't feel right at all so SIN is never going to be on my radar.

To trade stocks like these one needs to be a bit of a Privateer at heart..

Hopefully the new Facial AI software will monitor...

https://en.wikipedia.org/wiki/Francis_Drake

This stock is certainly for the raiders ..

One wonders how far up the DIA chain this went.

Another take on the incident ...

https://www.stuff.co.nz/opinion/300966848/skycity-had-a-nasty-tumble-and-prefu-could-bring-the-same-for-nz-economy

If your wondering why gambling in Kanga land is on the rise fear not. The Kangas have been the Kings and Queens of habits since the 1900's.....

The Snow trade as it was know was rampant by 1928 and the first police drug squad was created....

Lets hope Sky City AUS get a really big fine and the share price takes an even bigger hit....punters could make a lot of money out of this one if Sky city keeps its license..

Punters...  looks like the Kangas are King of the punt ever since the first MB cup race. Its in there DNA and who needs the China rich boys when the Kangas  among the worlds best punters...

State GOVT's in Kanga land will never close punting down because it makes them too much MONEY in Taxes!!

What is going on here. Has the gambling commission and Internal inspection department lost the plot ...
 
https://www.youtube.com/watch?v=IXMszatHSOE

Aussie Super seems to like the stock.


Summary for AustralianSuper Pty Ltd
For this disclosure,—
(a) total number held in class: 63,705,099
(b) total in class: 760,205,209
(c) total percentage held in class: 8.38%
For last disclosure,—
(a) total number held in class: 55,229,888
(b) total in class: 760,205,209
(c) total percentage held in class: 7.27%

yeeesss....

says it all doesnt it...

notice it this morning...

The perfect venue would have a race track... horses and dogs till mid night...

then select the casino of your choice...

then the dance club of your liking...  music to go .... dancers from all over the world ... some singers .. more dancers... https://www.youtube.com/watch?v=K3Qf-GkIK48

hotel to stay in ...

you could get lost for days ....

someone sue the MIA  "ministry of infernal A.....ls....."

https://www.youtube.com/watch?v=VG4F_LlSvJw

Tron used to be the dance capital of the country and now its ... like ...

https://www.youtube.com/watch?v=oG85zhpgmJY

"The cliche that casinos are a licence to print money may need a rewrite." That's the final sentence in today's SMH article on Star. $1.55 billion equity raised in 7 months. In February, they went for $800 million to repair the balance sheet; now they're chasing another $750 million @ 60cps (2021 sp = $3.75.)  They've had regulator issues too -  found unfit to hold their casino licence and placed on strict probation. 

" placed on strict probation"

YUP ...

they will need some dancing girls ...

Phew LOTS of shares handed out under various "performance incentive plans." 20 pages in the announcement.   (https://www.nzx.com/announcements/418980)  The company must be really flying, eh.  So much performance.

yes what a performance !!!!

are they there yet?

https://www.youtube.com/watch?v=9OXHiOQjRLM

Morningstar are still keen on SkyCity, in a report released today:

"A short-term suspension of the New Zealand casino license is likely, the Adelaide casino license is under review, and there is significant uncertainty around the Austrac civil penalty against SkyCity Adelaide - we expect about $50 million,"

"But we think pessimism is overblown. SkyCity's properties are enjoying significant revenue and earnings growth with pandemic restrictions over, capital spending is set to ease as $1 billion in major projects across Auckland and Adelaide complete, and the long-dated and exclusive license in Auckland means it should benefit from the continued recovery in New Zealand tourism."

its a stich up... that Infernal Ars... department want that license so they can give it to IWI...

the sharks... IWI are hunting that license and MAMA MA HUUUU TA and her mates want in ...

https://www.youtube.com/watch?v=Te3_VlimRw0

SKC should bring damages and put an PI team on the job to find who put that punter up to it...

SkyCity chairman Julian Cook says the company will probably admit allegations that its Australian casino operation breached anti-money laundering laws and pay a multi-million dollar penalty.

"We are yet to strike a final agreement with Austrac, but, if we do, it will most likely include admissions of such nature," Cook told Markets with Madison.

"We will probably be paying a fine."

https://www.nzherald.co.nz/business/skycity-chairman-well-probably-admit-to-breaking-the-law/EA6MFHZ7MJBVRF7G5DM7NQJGYM/

Markets with Maddison

Good interview with the Chairman. Very frank.

This  is for the Sir Walter Raleigh's of the world....

she a spanish Galleon demasted in a storm with a bad helmsman...

sort of like the spanish armarda in the English channel hit by a storm. The captains drunk in the state room while it sailed into a storm under full sail.

she ready the for boarding soon... cutless in hand take no prisoners... oh hang on its 2023 ... sort of civilised but not really...

Desperate times call for desperate measures..

https://www.youtube.com/watch?v=LkWQvzrv6gI

Quote from: kiwi2007 on Oct 30, 2023, 12:12 PMSkyCity chairman Julian Cook says the company will probably admit allegations that its Australian casino operation breached anti-money laundering laws and pay a multi-million dollar penalty.

"We are yet to strike a final agreement with Austrac, but, if we do, it will most likely include admissions of such nature," Cook told Markets with Madison.

"We will probably be paying a fine."

https://www.nzherald.co.nz/business/skycity-chairman-well-probably-admit-to-breaking-the-law/EA6MFHZ7MJBVRF7G5DM7NQJGYM/

Markets with Maddison

Good interview with the Chairman. Very frank.

Yes, decent interview. I enjoy the 'Markets with Madison' videos in a fairly barren NZ equities YouTube landscape.

I'm neither a shareholder nor a gambler/ gamer although some may consider 'playing' the markets as gambling.

ok OMP your not going to be a prirate and jump on that ship...

cant wait ...

"fairly barren NZ equities YouTube landscape."

 they are going to close it down...Winner() said so ...

as retail investors sell notice the STR's

https://www.stuff.co.nz/business/money/301014204/with-40000-lost-a-21yearold-gambler-says-panic-took-over

Quote from: Basil on Nov 27, 2023, 11:01 AMhttps://www.stuff.co.nz/business/money/301014204/with-40000-lost-a-21yearold-gambler-says-panic-took-over

A zad ztory, but can you blame Zky Zitty for thees?

1/ "He estimated he was $20,000 up when he went in. But things got out of hand."
Zo he vas $20,000 up vhen he started his Vriday nights gambling, after gambling at the casino for 'several weeks', vith apparently no overall issues.

2/ "Between 5pm and 1am, he was on a losing streak that he said eventually cost him $43,000 – including $12,000 that he gave to a friend to buy chips for him and $4500 that he gave to his mother for chips."
Zo he got -two- other people to buy hees gambling chips, presumably realizing that the people dispensing the chips vould have cottoned on to hees behaviour, eef he had continued to buy the chips from them himself.

3/  He said, in previous weeks, vhen he had been vinning, staff had regularly reminded him to take a break.
"That day I was on a big losing streak, I was too hot-headed and kept going and no one stopped me.
"They came and told me I was due for a break but I blew them off, I'm gambling, not thinking straight and they walked off in literally a few seconds."

Zo zee ztaff deed try to ztop heem, as they had done previously vhen they advised heem to 'take a break' on previous occasions (vhich vould have taken them a vew zeconds), yet thees time he told them to 'get lost' (after a vew zeconds).       

4/ "Julshan was asked by the casino operator on Friday whether he would agree to ban himself."
Zo ze casino ztaff deed not take 'no' vor an answer that Vriday night and came back later that night, asking Julshan to ban heemzelf?

"The next morning, he went back and lost another $2000 trying to win back his money, before he was pulled aside and told he was suspended."
Zo Zky Zitty vas 'on ze ball' and ztopped thees gambling spree vithin 18 hours?

5/ "He said he would also stop online gambling."
Zo he vas gambling on-line, off zite, as vell?   Vhat deed you expect ze ztaff of Zky Zitty to do about thees?    Does thees not zay our gambler vas 'very determined' to continue hees gambling habit, vether Zky Zitty even exeested or not?


Geeven an apparently in control gambler who 'vent off the rails' in a highly deceptive but controlled vay over an 18 hour period, but nevertheless vas given three interventions and eventually ztopped, all vithin a vew hours, I vould zay Zky Zitty ztaff deed their job vell.  Very vell!

Vhat vould have happened eef Julshan had continued to gamble on line vith no intervention vrom anyone vrom Zky Zitty?

RB

I guess at some point you have to take responsibility for your own actions.

Gosh .... only 40,000 down....

remember in 2008 when the patron of our portfolios who had grown up the great depression said...

should we sell... someone replied "To late lets hold and pray"....

wonder how many investors/punters here have seen portfolio's 400 G down in those days of global ,melt down...

Infernal Affairs can roll him out as witness number 2.....

Ban all gambling... well there goes on line sports betting...

https://www.youtube.com/watch?v=70Eiwq9O8zA

Quote from: Red Baron on Nov 27, 2023, 01:01 PMA zad ztory, but can you blame Zky Zitty for thees?

1/ "He estimated he was $20,000 up when he went in. But things got out of hand."
Zo he vas $20,000 up vhen he started his Vriday nights gambling, after gambling at the casino for 'several weeks', vith apparently no overall issues.

2/ "Between 5pm and 1am, he was on a losing streak that he said eventually cost him $43,000 – including $12,000 that he gave to a friend to buy chips for him and $4500 that he gave to his mother for chips."
Zo he got -two- other people to buy hees gambling chips, presumably realizing that the people dispensing the chips vould have cottoned on to hees behaviour, eef he had continued to buy the chips from them himself.

3/  He said, in previous weeks, vhen he had been vinning, staff had regularly reminded him to take a break.
"That day I was on a big losing streak, I was too hot-headed and kept going and no one stopped me.
"They came and told me I was due for a break but I blew them off, I'm gambling, not thinking straight and they walked off in literally a few seconds."

Zo zee ztaff deed try to ztop heem, as they had done previously vhen they advised heem to 'take a break' on previous occasions (vhich vould have taken them a vew zeconds), yet thees time he told them to 'get lost' (after a vew zeconds).       

4/ "Julshan was asked by the casino operator on Friday whether he would agree to ban himself."
Zo ze casino ztaff deed not take 'no' vor an answer that Vriday night and came back later that night, asking Julshan to ban heemzelf?

"The next morning, he went back and lost another $2000 trying to win back his money, before he was pulled aside and told he was suspended."
Zo Zky Zitty vas 'on ze ball' and ztopped thees gambling spree vithin 18 hours?

5/ "He said he would also stop online gambling."
Zo he vas gambling on-line, off zite, as vell?   Vhat deed you expect ze ztaff of Zky Zitty to do about thees?    Does thees not zay our gambler vas 'very determined' to continue hees gambling habit, vether Zky Zitty even exeested or not?


Geeven an apparently in control gambler who 'vent off the rails' in a highly deceptive but controlled vay over an 18 hour period, but nevertheless vas given three interventions and eventually ztopped, all vithin a vew hours, I vould zay Zky Zitty ztaff deed their job vell.  Very vell!

Vhat vould have happened eef Julshan had continued to gamble on line vith no intervention vrom anyone vrom Zky Zitty?

RB

I'm no fan of casinos and the like... In this case it appears that Sky has done the minimum required under New Zealand's Gambling Host Responsibility requirements.  More detail here on their responsibilities.   (https://media.nzct.org.nz/documents/Gambling-Host-Responsibility-Guidance-HPA.pdf)  These sorts of stories do Sky no favours and you'd hope that they erred more on the side of caution (intervention and affirmative action) when faced with problem gambling behaviour. 

  oh how times have changed...

 Those sky city dance parties pre 2008... those were the day...

Quote from: Hectorplains on Nov 27, 2023, 05:34 PMI'm no fan of casinos and the like... [snip]

Casinos are a polarising zubject, do you not agree?  Ze trouble vith answering a post zuch as yours eez, to personalise zis topic, I come from the view that "Mr Zky Zitty" eez an 'OK guy' vhereas een you view Mr Zky Zitty" as a 'manipulative rat bag' guilty before being charged.  Thus everything that appears after your opening line gambit reads like a 'jackboot attack' of Mr Zky Zitty as he writhes on ze vloor.

I have vread ze 'Gambling Host Responsibility' booklet that you sent.  Danke schön.  BUT I am puzzled by your 'done the minimum required' accusation.  Your argument being that actually Zky Zitty did vollow the rules (box ticked) BUT deed not do enough? 

I agree the rezult for Julshan ($40k down in a night) vas terrible.  Yet it seems Julshan vas not a problem gambler before zhat Vriday night.  Zo there vas no particular heestory of bad behaviour to eendicate to Zky Zitty ztaff that he was any more a danger to heemself than a multitude of other gamblers on ze floor that night.  And, no doubt being a Vriday night, ze vloor vas busy.

Julshan vas also deliberately deceptive, more than vonce, in getting others to buy gambling cheeps vor heemself.  Julshan's gambling zuddenly escalated that one night.  Julshan vasn't doing anytheeng illegal.  He vas gambling vith hees own money.  Voolish, yes! But illegal?  No.  There is no law against being an eediot.  Yet you blame Zky Zitty for all of Julshan's woes?  Vhat zpecifically deed you egspect Zky Zitty to do, over and above vhat they deed?

To use another analogy, ve have 'health and zafety' laws: Guidelines of vhat to do and not do in the vorkplace.  And yet deespite ze employers best practice, ve still have vorkplace accidents.  Zo, every vorkplace accident eez alvays ze employers vault (by your logic)?

RB

Quote from: Red Baron on Nov 28, 2023, 09:23 AMCasinos are a polarising zubject, do you not agree?  Ze trouble vith answering a post zuch as yours eez, to personalise zis topic, I come from the view that "Mr Zky Zitty" eez an 'OK guy' vhereas een you view Mr Zky Zitty" as a 'manipulative rat bag' guilty before being charged.  Thus everything that appears after your opening line gambit reads like a 'jackboot attack' of Mr Zky Zitty as he writhes on ze vloor.

I have vread ze 'Gambling Host Responsibility' booklet that you sent.  Danke schön.  BUT I am puzzled by your 'done the minimum required' accusation.  Your argument being that actually Zky Zitty did vollow the rules (box ticked) BUT deed not do enough? 

I agree the rezult for Julshan ($40k down in a night) vas terrible.  Yet it seems Julshan vas not a problem gambler before zhat Vriday night.  Zo there vas no particular heestory of bad behaviour to eendicate to Zky Zitty ztaff that he was any more a danger to heemself than a multitude of other gamblers on ze floor that night.  And, no doubt being a Vriday night, ze vloor vas busy.

Julshan vas also deliberately deceptive, more than vonce, in getting others to buy gambling cheeps vor heemself.  Julshan's gambling zuddenly escalated that one night.  Julshan vasn't doing anytheeng illegal.  He vas gambling vith hees own money.  Voolish, yes! But illegal?  No.  There is no law against being an eediot.  Yet you blame Zky Zitty for all of Julshan's woes?  Vhat zpecifically deed you egspect Zky Zitty to do, over and above vhat they deed?

To use another analogy, ve have 'health and zafety' laws: Guidelines of vhat to do and not do in the vorkplace.  And yet deespite ze employers best practice, ve still have vorkplace accidents.  Zo, every vorkplace accident eez alvays ze employers vault (by your logic)?

RB

A lot of what you've posted is not what I said or it misrepresents my post (I did not say that they are "manipulative" or "guilty".)  To put it simply.  I don't see Skycity is at fault under their legal obligations.  I do wonder if they might be better served by going earlier, being more persistent and firmer in the upholding of those obligations.  Ultimately, story's like this one don't serve Skycity's brand well.  The law is one thing, their public image is another.

Gambling nrver has a good image  but what is the MC but a gaint gambling piss up day yet in australia its REP is out standing and any attempt to say other wise could have you run out of the country...

SKC is an easy punching bag as only recently has the technology been created that can possible have a go at tracking people in a crowded party scene..

its actually with Winston and other now in charge a possible destressed asset and a bargain for any privateer trader.

https://en.wikipedia.org/wiki/Wing_Commander:_Privateer

Sir FD..

https://en.wikipedia.org/wiki/Francis_Drake

The Thugs are in charge according to RNZ.

Some price action today..  buyers stepping in.

Quote from: Waltzing on Dec 01, 2023, 06:09 PMSome price action today..  buyers stepping in.

Judgment from the High Court in their favour regarding the termination of the  car park concession agreement with MPF Parking helped their cause. 

yes bother the price rise... though this could go lower still and make for a distressed assets the market hated....

as a privateer it would be to much of a spanish ship to not board ...

150 would be a great deal..

Times must be tough when gambling revenue declines.....

https://www.nzx.com/announcements/423144

SkyCity Entertainment Group Limited (SkyCity) advises that, following the completion of the first five months of trading across the Group, it now expects Group normalised EBITDA for FY24 of between $290 million and $310 million. This compares to Group normalised EBITDA of $310 million in FY23 and previous guidance on 27 October 2023 of a modest year-on-year increase in Group normalised EBITDA for FY24.

The key drivers to this change in earnings guidance are:

-a reduction in electronic gaming machine revenue across the New Zealand sites, reflecting continued cost-of-living pressures and economic uncertainty, which is impacting discretionary consumer spending;

-a weaker than expected performance in the Adelaide property based on a lower revenue outlook with continued legal and compliance cost pressure. SkyCity continues to review the cost base for the Adelaide business;

Quote from: Left Field on Dec 08, 2023, 10:11 AMTimes must be tough when gambling revenue declines.....

I think you mean when the money laundering tap gets turned off. 

not to bad considering... this is one of those cyclical businesses when times are good its People Party...

when tiimes are bad people stay home and star into the distance with the TV on and dream of good times and Parties...

its normal really...

it will return one day...

There are very few stocks on the NZX that are doing well and TRA is one of them but this one will take some time to rebound and probably not the helicon days of pre 2008...

also cost of flights around the world is still impacting tourism and there is a big problem with engine maintenance on new aircraft...

apparently the new generation requires more down time to keep flying and there arnt enough spare engines around...

although this discussion should be on the AIR thread but air travel does impact tourism and this is also a tourism stock..

probably 3 more years before this one starts to look a bit stronger.. think GFC..

https://www.nzx.com/announcements/425626

update on the fines .. and off course there is the local one to come.

maybe winston will step in and slap the wrists with a wet towel...

Quote from: Waltzing on Feb 01, 2024, 01:15 PMhttps://www.nzx.com/announcements/425626

update on the fines .. and off course there is the local one to come.

maybe winston will step in and slap the wrists with a wet towel...

So provision increased to A$73m or NZ$79m to reflect in principle settlement subject to court approval.

About half of the $150m that the brokers were forecasting as likely.

And no suspension or loss of license as was feared by some commentators.

say A 100 M ?  nice round number. Great if its only 70 ish.. but there is still the NZ one ...

market seem to like the news ... over 2 shortly..

no license suspension means off to the races after the fines..

well skc hit 2.15 on good volumns....

that did not take long..

hopefully stays here for a while.

Great story for the next 5 years as global tourism returns and people leave the hut for adventure...

Aus now off to the races..

 

Quote from: Waltzing on Feb 03, 2024, 08:53 AMwell skc hit 2.15 on good volumns....

that did not take long..

hopefully stays here for a while.

Great story for the next 5 years as global tourism returns and people leave the hut for adventure...

Aus now off to the races..

 

There's still NZ to be resolved of course but NZ is a small issue vs Australia.

Then, there's the increased compliance costs (many millions of dollars) which will impact on ongoing profits.

Offsetting the above is the NZICC which should finally finally come on stream next year.

" increased compliance costs "

be interesting to see how this is implemented and what additional requirements they may have to make...

Surely the ministers for racing and gambling will say enough is enough but maybe not in labour green governments...

Tourism was what got NZ going after the GFC and AUS will soon realise they have a GDP growth problem....

Tourism maybe how both countries grow the economies. Just look at the flood gate that has been immigration for NZ...

The AUS resolution may set a precedence for the NZ one in terms of these things being a slap..and pay up.

SKC might even challenge the findings of the NZ one..



 

My view is that Sky city have been in lengthy, flagrant and egregious breech of their duty of care to visitors for many, many years on both sides of the Tasman.

Rather than a rap over the knuckles the regulators should have used a sledgehammer to break them and stripped them of their license to trade.

I suppose another $100m fine here and a name change to SIN CITY, ticker code SIN would be a barely tolerable outcome. 

Since we come from a family that has spent centuries at the race track i cant remeber anything but a wonderful time at the melborne cup and evenings at sky city auckland and have never been pressured to sitting at any tables.

and this was the great day of days ...  https://www.youtube.com/watch?v=3Nuk5OjNAXY

heres to you Sir T.

https://en.wikipedia.org/wiki/Empire_Rose

unfortunately these types of industries do attract some characters of ill repute but your never going to shut down betting its like the ..

https://www.youtube.com/watch?v=AAGIi62-sAU

Quote from: Waltzing on Feb 03, 2024, 05:05 PMSince we come from a family that has spent centuries at the race track i cant remeber anything but a wonderful time at the melborne cup and evenings at sky city auckland and have never been pressured to sitting at any tables.

and this was the great day of days ...  https://www.youtube.com/watch?v=3Nuk5OjNAXY

heres to you Sir T.

https://en.wikipedia.org/wiki/Empire_Rose

unfortunately these types of industries do attract some characters of ill repute but your never going to shut down betting its like the ..

https://www.youtube.com/watch?v=AAGIi62-sAU

Likewise I have had some great times at Sky City over the years. Never gambled over $100 and the restaurants and entertainment are rather good.

It's all about discipline and knowing one's own limits.

NZ should really ban pubs given the number of deaths & serious injuries attributable to drink driving after patrons indulge themselves at said establishments?

Casinos like Sky City do need to up their game and fully meet their regulatory & compliance requirements however. It is good for the long term viability of the industry.

FBU handing over the hotel shortly and the convention centre later in the year...

Will be interested to see the final result and perhaps just in time for the world returning to travel with some airlines place some very big orders for planes..

https://www.reuters.com/business/aerospace-defense/boeing-sets-record-737-production-goal-july-2025-sources-2023-10-03/

Travellers from all over the world will come... built it and they will come.

Quote from: Waltzing on Feb 09, 2024, 09:14 AMFBU handing over the hotel shortly and the convention centre later in the year...

Will be interested to see the final result and perhaps just in time for the world returning to travel with some airlines place some very big orders for planes..

https://www.reuters.com/business/aerospace-defense/boeing-sets-record-737-production-goal-july-2025-sources-2023-10-03/

World has already reopened and travel is booming.

Sky City has unable to capitalise as much due to the 5 years delay in opening the NZICC.

Tourism and travel numbers .. perhaps should be on the AIR thread but think SKC need to move in this direction and focus a bit less on pure gambling.

https://aci.aero/2023/09/27/latest-air-travel-outlook-reveals-2024-to-be-a-milestone-for-global-passenger-traffic/#:~:text=Global%20passenger%20volume%20in%202023,94.2%25%20of%20the%202019%20level.

https://www.stuff.co.nz/business/350175812/department-internal-affairs-bring-case-against-skycity

We lower our fair value estimate for shares in SkyCity by 6% to NZD 3.30 (AUD 3.10) due to a structurally higher compliance cost base and higher-than-expected one-off fines. Interim fiscal 2024 underlying EBITDA fell 10% on the previous corresponding period to NZD 146 million—broadly in line with our unchanged NZD 289 million forecast. The weaker discretionary spending environment is seeing a reduction in spending by the mass market, weighing on casino earnings, particularly gaming machine play. But shares continue to screen undervalued. We think the market is overly concerned by regulatory headwinds, overlooking SkyCity's strong earnings potential. We forecast a five-year EPS CAGR of 7% over the next five years, underpinned by the recovery from the current cyclical downturn and a solid performance from the core Auckland property, which underpins the firm's narrow economic moat.

The full-year EBITDA guidance of NZD 290 million to NZD 310 million remains intact. While our fiscal 2024 forecast is below the guidance range, our estimate includes the 10-day closure of SkyCity's New Zealand properties with an EBITDA hit of about NZD 20 million. The guidance does not include the impact of shutdowns. We expect SkyCity's New Zealand casino license to be suspended for 10 days in fiscal 2024 after New Zealand's Department of Internal Affairs alleged SkyCity failed to comply with its regulatory obligation to monitor continuous play by a customer between 2017 and 2021.

The reduction in our valuation is mainly due to mounting regulatory costs. The firm increased its Austrac penalty estimate to NZD 79 million versus our NZD 50 million estimate. A penalty hearing is set for June 7, 2024. Further, we expect civil proceedings in New Zealand to result in the aggregate maximum penalty of NZD 8 million. The failings in both matters are mainly historical.

MorningStar.

Where is the growth story here. Sure it is on a low PE but I don't think EPS has growth 7% over the past 5 years, even with inflation over 4% for most of that time period. I would think the investment case for many hinges on how impactful the convention centre will be once built?

" growth story here"

there isnt one ... its going to be a very slow grind ... inflation hitting retail and hospitality for a few years to come.

NZRB could be the last to lower the OCR.  SKC and other NZ public companies with AUS investments must now hope AUS keeps them going.

2026? before you see some headway?

Same goes for a lot of NZ listed business...

If you have some gardening to do then the next 2 years will be perfect time to get those job done including any DIY..

Imagine having AI access to betting at the track side !.....

Track betting could see a whole new generation of gee gee followers all holding the smart phones in one hand and champagne in another?

will you be able to take it to the betting table!!!!

In your smart glasses!!!!

https://www.bbc.com/news/business-68304137

Having read the amount of stuff the casinos need to do to keep people safe wonder if Track side has anything like the problems that the WOKE society has placed on these companies. The amount of hand holding looks way beyond what is practical... its just silly.. its gone mad.

https://www.afr.com/companies/games-and-wagering/another-casino-operator-is-in-trouble-nobody-is-talking-about-it-20240419-p5fl81
(brief extract from article)
About the best thing you can say about SkyCity Entertainment, the owner of casinos in Adelaide and Auckland, is that it is not Star Entertainment, its rival gaming operator which is in the midst of a slow motion train wreck courtesy of NSW regulators.  But that's about it. At any other time, SkyCity's financial and strategic underperformance would be the subject of harsh scrutiny and vocal upset from investors.

SkyCity, the ASX and New Zealand-listed company which also runs Off Broadway casinos in Hamilton and Queenstown, is struggling to attract customers and lenders in an increasingly unforgiving regulatory environment.  SkyCity's Adelaide casino has been refurbished, but the company faces allegations it allowed billions of dollars of dirty money to be washed through its operations.

The most worrying sign for SkyCity shareholders is the attitude of its banks. Sources close to the casino group, not authorised to speak publicly about the matter, say that the company is having trouble convincing lenders to loan it money.  The main lender in question – according to the sources – is Commonwealth Bank, which has expressed an unwillingness to loan any more money. CBA declined to comment. SkyCity declined requests to comment about its strategy or financial performance.
The reluctance from lenders can be overcome. If it isn't, however, it could become a serious problem for a company that is facing millions of dollars in prospective penalties from regulators for its own wrongdoings. It's not hard to see why the company is struggling to find someone to advocate on its behalf. Operating in a strict regulatory environment is one thing – doing so without a leadership team is another.

Like Star and Crown, SkyCity has struggled to attract punters, or get them to spend the same amounts of money they did when the economy was more robust. Loss of revenue combined with regulatory challenges puts SkyCity in a difficult position.
As of June, SkyCity's net debt was NZ$443 million – it said it also had NZ$390 million in undrawn debt.  Assets sales must, at the very least, be a subject of discussion among those executives that are hanging around. On the other hand, it could be hard to find a buyer who would pay anything like middle-dollar for an asset with as many barnacles as Adelaide.

Dont forget inflation ... DIV will be under pressure for a few years to come... reminds one of the GFC... would not be surprised to see the DIV reduced or even ..... suspended for 12 months to cover some costs..

expect tourism to pick up and people have short memories... they will be ready to party again in a few years time...

people always are ...

"Despite the imposition of these additional costs, SkyCity's underlying FY24 Group EBITDA is still expected to be between NZ$290 million and NZ$310 million and underlying FY24 Group NPAT is expected to be between NZ$125 million and NZ$135 million."

be inetresting to see how this plays out ...

dont forget https://www.nzicc.co.nz/news

it might actually be used for something... you never know..

yes they are lining up to talk ... MILK!!!!

https://www.nzicc.co.nz/auckland-wins-world-dairy-summit

Might not be any media left to cover it ... you will have to take you own camera ...  live streaming on  COW channel!!!





 

Quote from: Waltzing on Apr 23, 2024, 05:20 PMDont forget inflation ... DIV will be under pressure for a few years to come... reminds one of the GFC... would not be surprised to see the DIV reduced or even ..... suspended for 12 months to cover some costs..

expect tourism to pick up and people have short memories... they will be ready to party again in a few years time...

people always are ...

"Despite the imposition of these additional costs, SkyCity's underlying FY24 Group EBITDA is still expected to be between NZ$290 million and NZ$310 million and underlying FY24 Group NPAT is expected to be between NZ$125 million and NZ$135 million."

be inetresting to see how this plays out ...

dont forget https://www.nzicc.co.nz/news

it might actually be used for something... you never know..

yes they are lining up to talk ... MILK!!!!

https://www.nzicc.co.nz/auckland-wins-world-dairy-summit

Might not be any media left to cover it ... you will have to take you own camera ...  live streaming on  COW channel!!!
 

Sky looking like a dividend trap you reckon, Waltz?

well who really knows but it always seems to bounce up a few dollars and then something hits it...

It looks to be a stock to trade and dump... then wait for the next calamity...

Its got some nice assets though and they look to have kept there license to print money...

inflation is its enemy, official compliance and border closures.

Its a trading stock.

be interesting to see how many booze ups , sorry milking drinking style get to gethers come along.

There is a big get together of wine growers in TOP of the North this year. People do like to come to NZ as long as NZ can get its WILD west under control.

https://winepro.co.nz/

This stock went up today ... like champagne popping ...

Gosh ... not really a green shoot stock though....

SKC has AA...GREED to a fine of 67M....

its now a departments of the minstry of health... wait till they track your facial skin texture to determine if your had one to many drinks... anyone with pink cheeks will be required to take a breath test at the BAR!!!!

https://www.nzx.com/announcements/431290

what ever happened to getting totally legs less in AUS....

anyone got any old footage of the CUP back in the 60's?

As a totally unrelated comment that should be over on culture i remember that after any regatta in syndney and amsterdam in the early 80's the PUB was the next stop...

Now they go home ... not even a cafe STOP!!!
 
suppose its all the DRUG testing... strong coffee..

Bit of a Downgrade for holders to digest..... and no Divvie for a year or two.

https://www.nzx.com/announcements/432366

SkyCity Entertainment Group Limited (SkyCity) advises that it has updated its earnings guidance for FY24. SkyCity now expects underlying Group EBITDA for FY24 of between $280 million and $285 million and underlying Group NPAT for FY24 of between $120 million and $125 million (1).
 
 This compares to previous guidance of underlying Group EBITDA for FY24 of between NZ$290 million and NZ$310 million and underlying Group NPAT for FY24 of between NZ$125 million and NZ$135 million.
 
 The key drivers of this change in guidance for FY24 are:
 
 - the ongoing challenging economic environment impacting customer spend (although visitation numbers across all sites remain strong);
 - a further delay in the opening of the Horizon Hotel (now expected in August 2024) due to delayed completion of works by the contractor to the project, which impacts hotel, food and beverage and gaming contributions across the Auckland precinct; and
 - a potential increase in Adelaide casino duty expense (for FY24) following the South Australian Court of Appeal's ruling on the interpretation of the relevant provisions in the Adelaide Casino Duty Agreement regarding the treatment of loyalty points, as announced by SkyCity on 22 February 2024.

 No divie for a while will shock some

pretty good result really... could have been a lot worse... NO DIV was in always on the cards... Dividends this year for a lot of stocks in entertainment could be under pressure and for some retail...
 
Not related to this stock but..

some old fashioned businesses are under pressure... some lovely cinemas are empty compared to pre covid in the central WAKATOO.

No shock Winner. it was written...

damn thing bounced back... now under a dollar would be good....

Quote from: Waltzing on Jun 06, 2024, 06:20 PMNo shock Winner. it was written...
damn thing bounced back... now under a dollar would be good....

A bit more drama posted late this afternoon

https://www.nzx.com/announcements/432427

As a consequence of the High Court's decision, the High Court will conduct a full hearing of the appeal from the decision of the Court of Appeal later this year. The outcome of that decision could be that the High Court confirms the interpretation of the Agreement adopted by the Court of Appeal, or determines a different interpretation, such as that put by SkyCity Adelaide before the Court of Appeal.
 
 The question of the applicable interest rate for outstanding duty, and whether the contractual interest provision in the Casino Duty Agreement is enforceable, remains to be determined by a single Judge of the Supreme Court at a later date. As previously announced, if the Supreme Court's decision on the applicable interest rate is unfavourable to SkyCity Adelaide and SkyCity Adelaide is also unsuccessful in its appeal of the substantive issue to the High Court of Australia, SkyCity Adelaide may be obliged to pay penalty interest on the additional casino duty, which could be up to around A$22.8 million (calculated as at 31 May 2024). If however SkyCity Adelaide is successful in its appeal of the substantive issue to the High Court (but unsuccessful in its application to the Supreme Court regarding penalty interest) then penalty interest may still be applicable but would be reduced to an amount of up to around A$2.4 million (calculated as at 31 May 2024).

Slightly off topic...

im pretty sure it will be pay up.... we are in one of those universes where every 8 to 10 years sell your portfolio becuase just around the corner is a titanic event like a global crisis or a new version of a world war ...

plague or volcanic eruption... wait till the sun ejects a huge cronial mass ejection the size of which the solar system has never seen and blasts the plant...

next someone is going to find the Arc of the C... and lead an army to save the west ...

 or  of course  https://science.nasa.gov/solar-system/asteroids/apophis/

could come closer than predicted and .... well its not something one wants to think about...

and since no one actually reads this forum... its a bit like doing a LAB really..

https://www.interest.co.nz/business/128122/skycity-entertainment-group-says-order-preserve-headroom-its-financing-covenants-it

creaping up again... you would think it would stay down for a while....

NPAT Taking a hit....... ouch for holders.......

https://api.nzx.com/public/announcement/436605/attachment/425272/436605-425272.pdf

Very pleased I have ruled this out long ago as an investment opportunity on ESG grounds.  This is pure and simple, "weapons grade" social destruction in terms of the harm it does in society with gambling addiction.
Personally know one bloke who has lost over $1m at SKC when he was addicted.  I'd be quite pleased if they went broke.  I see they have just issued U.S.$150m in 7 year USPP notes.  Gosh, what could possibly go wrong there lol

Totally agree Basil...... an easy personal investment decision to make..... shun the gambling industry.... does more harm than good.

its on the move again... slap from the courts...

auckland confer centre should be a go if you want to hold a big confer safe from nuclear dust in europe ...

now your all ready for the cup is Nov 5 ...

start studying the form ... wonder how many times an outsider has won ..

new convention hut finally going to be useful?


https://www.nzherald.co.nz/business/first-look-inside-skycitys-international-convention-centre-with-chairman-julian-cook-new-ceo/Z3DTFPJURJBE3MEGWW2UMQHWRY

A law firm is considering bring a case against SkyCity's former execs over Adelaide money laundering
A litigation funder is considering bringing a legal action against former SkyCity directors and executives over breaches of money laundering laws at the Adelaide Casino.

Litigation Capital Management is considering bringing legal action against former SkyCity directors and officers relating to the company's failure to implement adequate money laundering controls at the Adelaide Casino, leading to the group copping a $67m fine earlier this year.
LCM is considering launching a statutory derivative action against the directors and officers, and is advertising for SkyCity shareholders to join its claim.
A statutory derivative action is similar to a class action, however differs in that any money awarded if the matter is successful flows back to the company.
SkyCity was hit with a $67m fine by the Federal Court in May this year (https://www.theaustralian.com.au/business/legal-affairs/skycity-has-agreed-to-pay-a-67m-fine-for-money-laundering-breaches-at-its-adelaide-casino/news-story/537074b00e594dc8f36029c769bea6e2), after admitting to "serious breaches" of anti-money laundering and counter terrorism financing laws.
LCM said it will allege in its proceeding that SkyCity's leaders failed in their duties.
"The proceeding will allege that directors and officers of SkyCity Adelaide breached their statutory and fiduciary duties and/or were negligent by reason of their failure to implement adequate anti-money laundering/counterterrorism financing programs, their involvement in high-risk customer decisions and systemic compliance failures at SkyCity's Adelaide casino," LCM says in an email.
"This proceeding would be supported by LCM (or a related entity), a third-party litigation funder.
"If the claim is successful and financial compensation is recovered from the proposed defendants, legal costs payable and a funding commission for the litigation funder will be deducted from the recoveries, with the remainder paid to SkyCity for the benefit of its shareholders.
"The costs deducted from the recoveries will not exceed the amount of compensation to which the SkyCity may become entitled."

Quote from: KW on Dec 17, 2024, 07:50 PMA law firm is considering bring a case against SkyCity's former execs over Adelaide money laundering
A litigation funder is considering bringing a legal action against former SkyCity directors and executives over breaches of money laundering laws at the Adelaide Casino.

Litigation Capital Management is considering bringing legal action against former SkyCity directors and officers relating to the company's failure to implement adequate money laundering controls at the Adelaide Casino, leading to the group copping a $67m fine earlier this year.
LCM is considering launching a statutory derivative action against the directors and officers, and is advertising for SkyCity shareholders to join its claim.
A statutory derivative action is similar to a class action, however differs in that any money awarded if the matter is successful flows back to the company.
SkyCity was hit with a $67m fine by the Federal Court in May this year (https://www.theaustralian.com.au/business/legal-affairs/skycity-has-agreed-to-pay-a-67m-fine-for-money-laundering-breaches-at-its-adelaide-casino/news-story/537074b00e594dc8f36029c769bea6e2), after admitting to "serious breaches" of anti-money laundering and counter terrorism financing laws.
LCM said it will allege in its proceeding that SkyCity's leaders failed in their duties.
"The proceeding will allege that directors and officers of SkyCity Adelaide breached their statutory and fiduciary duties and/or were negligent by reason of their failure to implement adequate anti-money laundering/counterterrorism financing programs, their involvement in high-risk customer decisions and systemic compliance failures at SkyCity's Adelaide casino," LCM says in an email.
"This proceeding would be supported by LCM (or a related entity), a third-party litigation funder.
"If the claim is successful and financial compensation is recovered from the proposed defendants, legal costs payable and a funding commission for the litigation funder will be deducted from the recoveries, with the remainder paid to SkyCity for the benefit of its shareholders.
"The costs deducted from the recoveries will not exceed the amount of compensation to which the SkyCity may become entitled."

Whilst I see the reality of this might be correct that there is some real dereliction of duties, the only ultimate result I can see is it will be of a greater litigate environment being a cost handed on in one way or another to shareholders, potentially, higher risks of directorships mean higher personal liability insurance costs, that will be covered by higher director fees expected. Is the behaviour not best left to regulatory bodies. Costs will likely swallow any shareholder equity recovery, you would be paying and enabling someone to potentially achieve very little for you.

Quote from: Otago K on Dec 18, 2024, 05:56 AMWhilst I see the reality of this might be correct that there is some real dereliction of duties, the only ultimate result I can see is it will be of a greater litigate environment being a cost handed on in one way or another to shareholders, potentially, higher risks of directorships mean higher personal liability insurance costs, that will be covered by higher director fees expected. Is the behaviour not best left to regulatory bodies. Costs will likely swallow any shareholder equity recovery, you would be paying and enabling someone to potentially achieve very little for you.

Totally agree with that Otago ,and I cannot understand the drivers of this at all the only winners again will be LCM & its legal team ,this is what is dragging down the West, Asia will be falling over laughing

could go on for a while and insurance is the COVER they will want to duck for...

cant see many smaller share holders wanting to join. the big holders probably shorted the shock...along with others...

in the long run its to small to bother with really.

its the cost of operating a business like that..

bit like the racing game..NZ shutting down the hounds ...for different reasons of course.

Lowest close since the year 2000 for this ABSOLUTE DOG

These idiots couldn't make money if they were the only casino in town (oh wait, they are).

(https://i.imgur.com/3gM67eY.jpeg)

Star said the introduction of mandatory identification cards and restriction of cash use on the gaming floors has led to a 17 per cent decline in average daily revenue when compared to the daily average four weeks before the first stage of restrictions were implemented late August.

Customers at Star's Sydney flagship and Crown Resorts' Barangaroo casino can gamble up to $5000 in cash every day under existing state laws but the figure is meant to fall to a $1000 limit in August.

Was looking at this one recently, seems really hard to see how this could surprise to the upside in the next year or so. Really is only risks, bar a small asset selling for a good price to get that debt/editda ratio looking less covenant threatening.

The other thing that occurred to me with the carded play is the disadvantage this puts the casino at vs smaller operators with just a few pokie machines around Auckland. For better or for worse problem gamblers are probably some of the more profitable customers and these are the exact people that may be alienated to quieter, less regulated corners of the country for their gambling fix.

From an AU fund:

Sky City (ASX:SKC) owns and operates the (monopoly)
casino and entertainment complexes in Adelaide and
Auckland.

Despite the challenges faced by Crown and Star, SKC has
been able to broadly avoid the type of controversy faced
by its competitors. The same cannot be said for Sky City's
share price, which has fallen from as high as $4 before
COVID19 to as low as 82c as at 30 June 2025.

Sky City have suffered from a number of problems, some
global and some of their own creation:
• Due to recent controversies, the sector is deeply
unloved,
• The fear of regulatory issues (both known and
unknown) has accentuated investor concern
• One off costs require 'normalisations' for an accurate
depiction of performance,
• Due to the impacts of COVID, the slow economic
recovery, and their debt position, dividends were
recently suspended.

The business has generated solid returns over the last
couple of years, generating 17.5c of earnings last year
(against a current share price of 83c).
Driven by the two casinos, their convention centre in
Auckland, the newly established online casino business
and Auckland's Sky Tower (and carpark), we anticipate EPS
of 16c for FY27 which puts Sky City on a PE of just 5x.

Notwithstanding the value apparent from the company's
earnings and the prospect of the re-introduction of a
dividend, we expect SKC to drive significant value for
shareholders via the sale of their non-core assets (Sky
Tower and carpark). The tower and carpark alone are
expected to generate $415 million or almost 65% of the
existing market cap.

Given our expectations for the sell down of assets, the
repayment of debt, and the re-introduction of a dividend,
we believe there is upside in this unloved business.
Historically SKC has traded on a PE multiple of
approximately 17x earnings. If instead we apply a PE of
just 12x, the shares ought to be trading at $1.90. We think
this is conservative given the upside potential for the
business.

Wow that is a bullish assessment. It sounds so strange to me the idea of sky city selling its namesake tower, and did they not only just recently buy the carpark back? That being said, if you are looking at the covenant issue the most effective way to reduce debt to editda is to sell the asset with the highest value/ebitda which I imagine is the car park. What circumstances led to the carpark sale last time?

heading to 20 cents range

Latest in the saga of Adelaide Casino etc......... talk about grovelling and humble pie

https://www.nzx.com/announcements/456642

Disc - don't hold... but good for a laugh.

Julian Cook has his work cut out for him as chair of this sick puppy.

Halted for a cap raise.

For a second thought my dreams had come true and someone was making a play for this DOG, but no.

(https://i.imgur.com/DqQwSb3.gif)

Funny a den of iniquity needs more cash .... A bit like a kid asking Mum for more pocket money

Quote from: winner (n) on Aug 19, 2025, 03:14 PMFunny a den of iniquity needs more cash .... A bit like a delinquent child asking Mum for more pocket money

Fixed that for you  ;)
Julian Cook as Chair a smart operator and knows if he doesn't hand around the begging bowl now in conjunction with the results announcement the capital raise could be even more dilutive in the future.
The say the house never loses but in recent times that doesn't appear to be the case. I note that since they listed in 1996 it climbed to a high of $4.10 in October 2007 and yet here we are 18 years later and the shares are just $1, approx 25% of that figure.  With all the new AML requirements, you could say this is an industry in systemic decline...

I suppose the raise being at a premium is out the question  ;D  ;D  ;D

Quote from: entrep on Aug 19, 2025, 05:09 PMI suppose the raise being at a premium is out the question  ;D  ;D  ;D

LOL It'll be interesting to see if they can get enough support for a raise and if so at what sized discount to the last traded price.

Cap raise at 0.70c discount to SP, the question is will it do SPK/GNE and exit the down channel, hummm at 70c not anytime soon.

SKC_2025-08-21_12-49-59.png

Crickey.  Desperation pricing at 70 cents a share.  Only raised $81m fully underwritten shows a woeful lack of support from institutions.    https://api.nzx.com/public/announcement/457150/attachment/450026/457150-450026.pdf 

look like they got the lots or almost and there are race goers lining up...  probably in ten years time they will do a buy back... the licenses mean its a shadow bank..  sure they will except crypto soon if not already and it will be a washing machine all over again...punters backing up the truck..

Looks like the underwriters are going to get their pockets filled again just like last time with the RYM placement at ~ $3.  Gosh, this underwriting gig is not quite the gravy train it used to be.  How sad, never mind  ;)

For once I got out in time, albeit not soon enough, exiting at 99c last week.  I thought about staying in and taking a turn on the rights shares to mitigate some of my losses, which worked ok on FBU and NZKS, but after the Ryman debacle, decided against it.  SKC has been my worst long term hold, patiently holding on through all the issues (Adelaide, regulatory issues, NZICC, on again off again car park sale, star casinos as a comparator).  none of these issues is going away; is the NZICC ever going to turn a profit? Are the regulators going away? And fundamentally, it's easier to rationalise holding shares in a business which destroys a small percentage of its customers lives when it's paying a 20c dividend. 

Quote from: Basil on Aug 21, 2025, 08:21 PMCrickey.  Desperation pricing at 70 cents a share.  Only raised $81m fully underwritten shows a woeful lack of support from institutions.    https://api.nzx.com/public/announcement/457150/attachment/450026/457150-450026.pdf 

After the Crown and Star debacles, I'm amazed anyone is giving funds to this sector.

when credit cards handle crypto imagine it.. and Crypto cards are common and there on line game systems use it.. and they run a  block chain ledger which is superior in many ways to old fashioned transaction databases...

the bad boys line up 30 players with cards and wash the crypto and no one cares, say a decade from now...

not just one person taking in bags of money... NO NO... this games hasnt even started yet...

The big players like black rock and others will support the crypto ledgers..the regulators in a decade from now will be under pressure as governments slash budgets ...

This is AI generated and may contain errors.

- Even if you dont like the company - this assets is important for Auckland and probably tourism in the Greater Auckland Area.. Could do some promotional advertising inside for the South Island ... Queenstown..

Pity not own by another group BUT it still an ASSET.

Auckland Conference Centre (NZICC) 
Investment Scale and Timeline
The NZICC represents SkyCity's most significant growth catalyst, with over $430 million invested. The facility is scheduled to open in February 2026, marking the transition from investment drag to revenue generation.
Facility Specifications:

32,500 sqm of total floor space
8,600 sqm of exhibition space
3,000-person capacity with flexibility up to 4,000
2,850-seat tiered auditorium theatre
33 meeting rooms available simultaneously

Revenue Pipeline and Projections
Strong Pre-Opening Pipeline:

FY26: 76 events pipeline attracting ~107k visitor days (29 confirmed)
FY27: 121 events pipeline attracting ~251k visitor days (40 confirmed)
Full Capacity: Estimated 500,000 annual visitations at maturity

Financial Projections:

FY27 Expectation: NZICC breakeven on standalone basis
Revenue Synergies: Significant cross-selling opportunities across SkyCity's Auckland precinct (hotels, F&B, Sky Tower, casino)
Market Position: Expected to capture increased share of large-scale events, exhibitions, concerts, and conventions

Economic Impact
The NZICC positions Auckland as a premier Asia-Pacific convention destination, directly competing with Sydney and Singapore. The facility's world-class specifications should drive premium pricing and high utilization rates as New Zealand's economic recovery accelerates.

Adelaide Operations - B3 Transformation and Regulatory Resolution
Building a Better Business (B3) Program
Adelaide has been the focus of intensive remediation efforts following regulatory challenges. The B3 program represents a comprehensive overhaul of operations:
Investment Profile:

FY25 Spend: NZ$17.6 million (Year 1 of 3-year program)
FY26-27 Continuation: ~$20 million annually
Total Investment: Expected ~$60 million over three years
Completion: B3 costs expected to exit the business by end FY27

Operational Performance
Despite regulatory headwinds, Adelaide showed resilience:

Gaming Revenue: A$145.7m (6.0% decline from A$154.9m)
Non-Gaming Growth: A$66.5m (4.5% increase from A$63.7m)
EBITDA Margin: 13.4% (down from 16.7% but stabilizing)
Visitation: Improved to 1.2m (+5.0%)

Regulatory Resolution
The Brian Martin independent review concluded that SkyCity Adelaide is suitable to hold the casino licence, providing regulatory certainty. While potential enforcement action remains unclear, the fundamental suitability finding creates a stable foundation for recovery.
Key Improvements:

Enhanced AML/CFT systems
Improved host responsibility programs
Strengthened compliance frameworks
Resolved casino duty dispute

Recovery Trajectory
With regulatory uncertainties largely resolved and B3 investments maturing, Adelaide is positioned for margin expansion from FY27 onwards. The facility's monopolistic market position in South Australia provides pricing power as economic conditions improve.


Investment 
SKC represents a possible turnaround story with multiple catalysts converging over the next 5-10 years. The company has endured a challenging investment phase while building world-class infrastructure and resolving regulatory issues. The combination of:

NZICC opening creating a new revenue pillar
Adelaide B3 completion normalizing cost base and margins
Favorable monetary policy supporting consumer recovery
Asia-Pacific growth resumption driving tourism and conventions
Structural market position in supply-constrained premium segments

These factors create a pathway for significant earnings recovery and long-term value creation. While near-term volatility is expected, patient investors should benefit from SkyCity's transformation into a diversified, premium entertainment and convention operator positioned for sustainable growth in the recovering Asia-Pacific economy.
The next 5-10 years should witness SkyCity's evolution from a cyclical gaming operator to a diversified entertainment and convention powerhouse with multiple growth vectors and sustainable competitive advantages.

Retail entitlement offer of $45m was an epic fail with only one third of that amount $15m, subscribed for.  Underwriters got their boots filled again, just like with the RYM capital raise and sure enough, just like in RYM's case the share price is now tracking south.    Overseas evidence suggests that once you initiate full AML compliance and take all the money laundering out of these places the business model is basically broken.  SKC will of course claim otherwise but I think there's a very long road ahead to try and get a reasonable return on capital employed in the new international convention center.

QuoteAmended notice - SkyCity clarifies that the approximately NZ$30 million in
New Shares not taken up under the Retail Entitlement Offer have been fully
allocated to sub-underwriters as procured by the underwriters, including to
existing institutional shareholders. See below for full announcement text.
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES MARKET RELEASE SkyCity
Entertainment Group Limited (SKC.NZX/SKC.ASX) 9 September 2025
SkyCity completes Retail Entitlement Offer SkyCity Entertainment Group
Limited ("SkyCity") announces that it has completed the retail entitlement
offer component ("Retail Entitlement Offer") of its NZ$159 million fully
underwritten 1 for 3.35 pro-rata accelerated non-renounceable entitlement
offer ("Entitlement Offer") of new fully paid ordinary shares ("New Shares").
SkyCity has raised a total of NZ$240 million under the fully underwritten
institutional placement ("Placement") and Entitlement Offer announced on
Thursday, 21 August 2025. This includes gross proceeds of approximately
NZ$195 million received under the institutional component of the Entitlement
Offer and Placement, and approximately NZ$45 million in gross proceeds under
the Retail Entitlement Offer. Eligible retail shareholders subscribed for
approximately NZ$15 million in New Shares, including approximately NZ$3
million of oversubscriptions. Eligible retail shareholders who took up
their entitlement in full and applied for additional New Shares in excess of
their entitlement received all of the additional New Shares for which they
applied, up to a maximum of 60% of their entitlement, meaning they could, at
a minimum, maintain their existing percentage shareholding through the
Placement and Entitlement Offer. The effective take up rate by eligible
retail shareholders was approximately 33%. The approximately NZ$30
million in New Shares not taken up under the Retail Entitlement Offer have
been fully allocated to sub-underwriters as procured by the underwriters,
including to existing institutional shareholders. The New Shares to be
issued under the Retail Entitlement Offer are expected to commence trading on
the NZX Main Board on Thursday, 11 September 2025 and the ASX on Friday, 12
September 2025 and will rank equally with SkyCity's existing ordinary shares.
SkyCity wishes to thank all shareholders who participated in the equity raise
for their continued support.

How I see it. The business will keep limping along and get propped up with asset sales in due course.  Highly speculative whether this will ever generate commercially acceptable returns on funds employed again.  I seriously doubt it.  Fails my ESG test too.  There's far too much social harm from gambling in my opinion.

I agree the new shares taken up was disappointing & a fail ,although be straight up it was expected to be so as the share price has been just under the offer price for the past few weeks and in line with other failures in the capitol raise sphere during this bear market .
 It has been interesting & still is tracking the share price closely for the past month or so whilst this has been going on ,the big question now is how low can it go as the underwriters sell off as much as they can , the share price for good reasons seems to be stopped at the 67 cents thereabouts .
I tend to agree with Waltzing Once the convention certain kicks in this will rise again very significantly .
 As far as esg Basil those persons =socially harming themselves will do it far more easily at the t a b and scratch cards drinking alcohol from the liquor store  etc. etc. without any help from skc .
 

Actually that report was an Anthropic AI report. We have set up a anthropic project with Financial documents in it. As we have several large AI accounts we can devote some space to Financials as some of our software under several privates registered companies process financial transaction data.

We ran  these report repeatedly until AI got the figures looking a little like they were accurate. AI at present on a normal non API account needs to process information multiple times to get an slightly accurate answer.

It thinks SKC has a chance in 5 years time.. inside that time frame its slow going according to AI.

The CAP raise was probably in light of all thing a success...

I do not use AI much myself just for gathering info ,but your saying you get a different outcome each time with anthropic does not  look very robust or groundbreaking still usefull.
Interesting drop today as it seems the underwriters are disposing ,could go on for a while I look forward to seeing the outcome of this cap raise .
 

Off Topic, as AI model memory context is increased the amount of data that AI can access in memory may increase and the number of times context may need updating may reduce and its also the programming tools such as python and javascript used to create the "search" . When we hook up our new binding machines in the next 24 months we might get better answers..

Then running financial reports through the models for investment might become the go to..

Even now it only takes 10 minutes or so to get an interesting an answer and then perhaps 30 minutes to refine that answer...

Thats pretty good although the SKC did take 30 minutes at least as AI had to write python code it seemed which was a shock.

Why was AI writing python code and the AI model not doing the maths? It shows that AI models like anthropic dont run anything like what we the public think and we arnt normal public as we own software like the binding machine a class of software the public dont even know exists.

Now what we saw when it did the SKC report was that Anthropic was running AI models more like a autogenerated VBA excel module coded by AI and then it would generated information from the VBA excel spreadsheet and feed the resulting data report back into AI model along with the financial statements to compare its resulting computations in python to the financial reports..

It model could then get text fragments mixed up and then you see its not AI but more like some fancy maths language machine...

It does not creatively think as such and it more like panning for gold..

Distressed assets modelling from AI. for this bad boy of the market..

The interesting thing is the AI models seem to be getting better and better.. it says this bad bad boy is assets undervalued..

https://claude.ai/public/artifacts/fbdc1748-a836-43e3-a1ca-f77f03c2f13a

well... next july the socially except able part of this business and hopefully the good parts will impact to parts that need some work...(a lot)... well the new start attraction of the business gets some good news...


https://www.nzherald.co.nz/property/skycitys-nz-international-convention-centre-books-95-events-for-2026-whos-coming/6DQFJWLHVNAJNLHACW63QCQ6FI/

https://coralreefsecc.org/event-calendar/16th-international-coral-reef-symposium

More lawsuits. Holding this really feels like a war of attrition.
https://www.nzx.com/announcements/468752

Some people might be tempted to think that all the challenges SKC have faced and are facing are Karma for all the social harm they've caused over the last 30 years.  I have some sympathy with that point of view.

Quote from: Basil on Mar 06, 2026, 10:34 AMSome people might be tempted to think that all the challenges SKC have faced and are facing are Karma for all the social harm they've caused over the last 30 years.  I have some sympathy with that point of view.

Dens of iniquity eh

Anyone differ from the following?

Trading below NTA at ~$0.85 after a brutal 70%+ decline over 5 years. The question is simple: broken business or oversold turnaround?

The bad: Underlying EBITDA down 28% in 1H26. Adelaide is basically worthless after compliance costs. Carded play has structurally reduced NZ gaming revenue. 45% share dilution from the equity raise. No dividend, probably until FY28 at earliest. Allan Gray losing conviction. Online lawsuit just dropped. Market is telling you this business can't earn an adequate return on its assets.

The good: NZICC is finally open with a strong events pipeline. $200m of asset sales targeted by Feb 2027 which would get leverage under 2.0x. NZ online gaming regulation coming late 2026 and SKC has first-mover advantage. Carded play gives them 120% more customer accounts and genuine data for the first time. Trading at ~7.7x EV/EBITDA on trough earnings. ACC and NZ Super buying. The $330m Fletchers claim is free optionality.

Bottom line: If NZICC delivers cross-precinct benefits, asset sales happen, and Adelaide stops bleeding you're buying a monopoly entertainment precinct at half book value. If none of that lands, you're catching a falling knife in a sunset industry.

I'm down bad, but on a 2-3 year view, risk/reward looks skewed to the upside from here?

There's no shortage of action at SkyCity Entertainment, the New Zealand-listed casino and hotel operator that's nutting out a deal to sell The Grand in Auckland and reviewing its troubled Adelaide asset.
Investment bank UBS has won the mandate to weigh strategic options for $557 million SkyCity's casino in Adelaide's North Terrace, after the decision was flagged at last week's full-year results. But, a much bigger M&A deal is brewing behind closed doors, with sources telling this column that a cashed-up suitor was weighing an all-of-company bid.


AFR Sunday night rumour mill

Quote from: Crackity on Aug 23, 2026, 09:36 PMThere's no shortage of action at SkyCity Entertainment, the New Zealand-listed casino and hotel operator that's nutting out a deal to sell The Grand in Auckland and reviewing its troubled Adelaide asset.
Investment bank UBS has won the mandate to weigh strategic options for $557 million SkyCity's casino in Adelaide's North Terrace, after the decision was flagged at last week's full-year results. But, a much bigger M&A deal is brewing behind closed doors, with sources telling this column that a cashed-up suitor was weighing an all-of-company bid.


AFR Sunday night rumour mill

archived article, free to view
https://archive.is/StqAB

Lazy journalism at the end of that...says they raised at 70c and the shares are now 50c. They might be AUD50c but if that's the reference the raise was at AUD63c at the time I think