Changes are happening - please bear with us while we update our site.

Join Free
Log in

Changes are happening - please bear with us while we update our site.

Join Free
Log in

Is SKYCITY (ASX:SKC) A Good Bet For Growth?

Is SKYCITY Entertainment Group Limited (ASX:SKC) worth a bet on its latest growth plans?
Picture of Jaz Harrison

Jaz Harrison

Jaz is a Staff Writer for Rask. She is a keen investor who loves to thoroughly poke holes in an investment idea before it has a chance of making it into her portfolio. Jaz invests for the long-term and doesn't sweat the small stuff. She strongly believes that empowering people with knowledge is the best way for them to take charge of their finances, which is exactly the approach she takes with her own money and investments.
More analysis

Is SKYCITY Entertainment Group Limited (ASX: SKC) worth a bet on its latest growth plans?

Skycity is a casino and entertainment provider with complexes in Auckland, Hamilton, Queenstown and Adelaide. At some or all of these locations it also has hotels, restaurants, bars and conference facilities. On the ASX, Skycity’s key peer is Crown Resorts Ltd (ASX: CWN), the casino and gaming operator.

What Has Happened With SKYCITY?

SKYCITY announced that its Maltese subsidiary will partner with international e-gaming company Gaming Innovation Group Inc to provide New Zealanders with an online casino gaming platform.

The skycitycasino online gaming site will launch in the next few months and operate from Malta with a “.com” URL.

Under the current New Zealand law, only Government-owned Lotto and TAB are permitted to offer online casino gaming from within New Zealand, although many Kiwis use offshore operators to participate in that market.

Whilst SKYCITY will be operated from overseas, it will ensure its New Zealand GST obligations are complied with.

According to SKYCITY, the New Zealand online casino market provided by offshore operators is worth around $160 million, with these overseas providers not liable to pay local gaming tax, not likely to be paying GST in New Zealand and not required to comply with responsible practices.

The SKYCITY CEO said he would support regulation of the New Zealand casino market, with licensing, taxes and mandatory host responsibility requirements.

Graeme Stephens, SKYCITY CEO, said: “Online casinos are widely used by New Zealand customers and this trend will only continue. The world is rapidly moving online and our industry is no exception, so we have to ensure we remain relevant to changing consumer trends and preferences.”

Does This Make SKYCITY A Buy?

SKYCITY is not anticipating any meaningful contribution from earnings from its online business in the pre-regulation phase of the online casino market in New Zealand. However, the company sees this as a long term opportunity.

This move is a good signal that SKYCITY is planning for the future, but I think it’s far too early to base a buy decision on this move. It’s a decent dividend share idea but I would rather buy shares of the reliable businesses in the FREE report below instead.

[ls_content_block id=”14945″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Access all reports now

Unsubscribe anytime. Read our Terms, Financial Services Guide, Privacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Latest stories

Free passive income report
Skip to content