Delaware North confirmed as SkyCity Darwin casino buyer

ONE of the largest privately held hospitality and food service companies in the world is the new owner of the SkyCity Darwin Casino

Front of the Skycity Casino

AMERICA’S Delaware North, one of the largest privately held hospitality and food service companies in the world, is the new owner of the SkyCity Darwin Casino.

SkyCity Entertainment Group chief executive Graeme Stephens has announced that it has signed an agreement to sell its Darwin business, excluding the land it holds at Little Mindil, for $188 million.

SkyCity will also continue to own the beachfront Little Mindil site and will run a separate process to sell the prime waterfront site. With the sale of the Darwin casino still contingent on the new owner gaining regulatory approvals in the Northern Territory, SkyCity will continue running the business until regulatory approval is received.

A new name for the casino has not been determined.

Graeme Stephens, Chief Executive Officer of SKYCITY Entertainment Group

Mr Stephens and Delaware North co-chief executive officer Louis Jacobs sealed the deal in Darwin yesterday.

Mr Jacobs told the NT News Delaware North’s long and successful association and business interests in the Northern Territory were a determining factor in buying the casino.

“We have been in the Northern Territory for some time now, so the decision was a fairly easy one for Delaware North,” he said.

It has Northern Territory resort interests at Kings Canyon in Central Australia, owns the Lizard Island resort in Queensland and hotels and food and beverage outlets across Australia.

Delaware North global operations include regional casinos, high-profile sports and entertainment venues, national and state parks, destination resorts and restaurants and airports.

“We are a large family business and while we see expansion plans ahead for the Darwin casino it will be business as usual in the short term,” Mr Jacobs said.

“Our extensive business interests extend to resorts so this is definitely a good fit with that. We have been in Australia for 30 years and we are very excited to now grow our Darwin business.”

Mr Jacobs said Delaware North is looking forward to working with the Northern Territory’s Tourism Department to market its new casino and the Territory as a destination in the US.

“We are thrilled to have grown our business into a diversity of operations across the country, which has been possible because of our incredibly talented and diverse workforce of more than 10,000 people.

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“With SkyCity Darwin, we are expanding our presence in the gaming and entertainment market. We look forward to working with SkyCity Entertainment Group to welcome their employees at SkyCity Darwin to the Delaware North family.”

Mr Stephens said the sale was a good outcome for SkyCity, the resort’s staff, and the city of Darwin.

“I’m really pleased that following a very competitive tender process Delaware North has emerged as the successful bidder,” Mr Stephens said.

“They are a highly respected and well-established hospitality and gaming company and I’m very comfortable handing over the business we have built up over the past 14 years to an operator of this calibre.’’

All the company’s 650 staff will be retained once the change of ownership takes effect.

Mr Stephens said selling was not an easy decision.

“We’re proud of our contribution to Darwin and the Northern Territory over the past 14 years,” he said.

“Since we purchased the business in 2004 we’ve expanded and refurbished the resort, adding new restaurants and bars, VIP facilities, and a new 5-star resort hotel.

“We’ve worked hard at turning Darwin’s casino into an integrated entertainment destination for Darwinians, adding rock concerts on the lawn and the new Infinity Beach Club, and supporting local tourism and community events.”

SkyCity’s association with Darwin will continue for some time, however, through the ongoing use of the casino’s VIP facilities for at least the next two years (subject to availability) and the company also retains the rights to operate an online casino in partnership with Delaware North should a licence be granted in the future.

“International business and online are both areas where we see growth potential so I’m pleased we are able to retain these links with the Darwin property,’’ Mr Stephens says.