After the announcement that 11 entities had earned the right to apply for the 15 online casino licenses up for grabs in New Zealand, investment firm Forsyth Barr has noted that SkyCity Entertainment Group’s venture could be “net present value (NPC) neutral,” with the rate of return broadly in line with the cost of capital.
SkyCity is New Zealand’s largest integrated resort operator, with its flagship SkyCity Auckland, a casino in Hamilton and Queenstown, as well as SkyCity Adelaide in Australia. The group already operates an online arm, SkyCity Online, based in Malta.
The group notes that the investment is likely more strategic than financial, noting “becoming a meaningful online operator could help insulate SkyCity from any migration away from its land-based casino to online.
