New gaming concessions have lifted revenue at Adelaide Casino in the lead up to its $330 million expansion

NEW gaming concessions have attracted more visitors to Adelaide Casino’s VIP gaming rooms, lifting revenue in the lead up to its $330 million expansion.

Artist impression of Adelaide Casino expansion.

NEW gaming concessions have attracted more visitors to Adelaide Casino’s VIP gaming rooms, lifting revenue in the lead up to its $330 million expansion.

Operator SkyCity Entertainment released its first-half results this morning, with Adelaide Casino contributing $78.1 million in revenue, up 1.3 per cent from a year earlier.

Table gaming revenue increased 5.9 per cent in the six months to December, to $40.8 million, offsetting a fall in revenue from gaming machines, which fell 3.5 per cent to $26.1 million.

SkyCity said the VIP gaming concessions had helped offset the impact of disruption from early construction works in the Festival Plaza precinct.

The New Zealand based company reported an 11.6 per cent increase in net profit to NZ$93.5 million, with revenue 4 per cent higher at NZ$554.7 million.

“We continue to make progress on our current strategic initiatives and the significant developments underway in Auckland and Adelaide position the company for earnings growth and creation of shareholder value over the medium-term,” SkyCity chief executive Graeme Stephens said.

“Despite ongoing disruption from capital works in Auckland and Adelaide and a slightly less favourable New Zealand economic environment, we remain confident we can continue to deliver growth from our existing assets as well as the new projects in the pipeline.”

Under the VIP concessions secured by Adelaide Casino in July, the maximum annual spend for customers to qualify for the casino’s high-stakes premium gaming rooms was slashed from $12,000 a year to $8000.

The maximum number of guests premium gaming members are allowed to invite into VIP rooms was lifted from one to four, while the casino was given discretion to invite up to 1000 prospective customers to qualify for premium gaming.

Premium gaming members are allowed unlimited maximum bets and have access to cashless gaming.

The concessions were secured as part of a development agreement struck with the State Government, paving the way for the casino’s $330 million expansion.

SkyCity said the selection of a builder for the project was imminent, with works to commence in the first half of this calendar year. The expansion is expected to be completed in the middle of 2020.

SkyCity will pay a dividend of NZ10 cents on 16 March.