SKC - SkyCity

[kiwi2007]

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...

[winner (n)]

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...

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

[Arbroath]

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

[Left Field]

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

Just saying.

[Basil]

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.

[Waltzing]

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

Oceans of it!!!

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

[kiwi2007]

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

[Waltzing]

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

[Waltzing]

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?
 

[Waltzing]

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.....

[Waltzing]

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

[winner (n)]

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

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

Cool eh

[Waltzing]

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

completely flab garsted...

[kiwi2007]

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

[Waltzing]

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