SKC - SkyCity

[Hectorplains]

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

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.

[Waltzing]

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.

[Waltzing]

Some price action today..  buyers stepping in.

[Hectorplains]

Some 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. 

[Waltzing]

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..

[Left Field]

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;

[KW]

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

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

[Waltzing]

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...

[Waltzing]

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..

[Waltzing]

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...

[Teitei]

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...

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.

[Waltzing]

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..

[Waltzing]

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..

 

[Teitei]

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..

 

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.

[Waltzing]

" 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..