Sky City Online Pokies

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Sky City Online Pokies

Highly involved in the up and coming Pokies scene, Auckland City is also the proud host of one of New Zealand’s biggest casinos, SkyCity. Opening in 1996, SkyCity was the second Casino to open, in the country. You can easily find and access other pokie machines at various bars and pubs scattered across the city.

Over recent years, the number of pokie machines across Auckland has stayed the same and yet there has been a large increase in the amount of money being put into pokies. As a result, it is believed that many are blaming accessibility for the increase.

Of all profits from gaming machines, about 40 percent goes back into the community through various trusts. This money forms the backbone of numerous organizations. There is no legislation to ensure that the money goes back to the same community it came out of.

Current Machine Numbers

Two questions regularly asked are;

1. is there a limit to the number of machines a bar can have?

Yes. Depending on when the venue’s license was granted, the limit may vary between nine and 18. The maximum number is 18 if it was before October 2001. Whereas, if it was after October 2001 the maximum number is nine.

2. Is there any limit on the number of pokie machines in a district?

The Gambling Act requires any territorial authorities to adopt a policy in the location of Class 4 gambling venues. It must be specified whether Class 4 venues may be established in the territorial authority district, and if so, where they may be located. It may specify restrictions as to the maximum number of operating gaming machines.

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Local councils also have class 4 venue policies which may typically include:

  • an ability to relocate 18 machine venues to new sites
  • caps on the number of venues
  • total number of gaming machines
  • A ‘sinking lid’ policy

Class 4 Venues

Venues must be entirely non-commercial and be established to raise funds for “authorized” or community purposes. Class 4 gambling involves non-casino electronic gaming machines, hosted in pubs and clubs.

‘Sinking Lid’ Policy.

The Auckland City Council is considering a ‘sinking lid’ policy for pokie machines. Meaning that the council will act upon their responsibility to reduce harm from gambling. Doing so by restricting the openings of new pokies venues over time, as well as the replacement of any closed down pokies venues. With this policy in place, the number of pokies in Auckland will reduce.

Why?

Auckland hosts 4,183 pokie machines across 305 different venues throughout the city. Problem gambling figures suggest that 40 percent of the money ‘lost’, comes from problem gamblers. Designed to be both costly and addictive, pokies machines are the most harmful mode of gambling. Social Gambling is causing an enormous amount of social harm. For every problem gambler, there are approximately 9-12 people who it is adversely affecting. These people are mainly children.

so, all-in-all the objectives are;

  • To control the growth of gambling in Auckland.
  • To minimise the harm caused by gambling in Auckland.

You may be happy to hear that the council does not have any control over gambling at the Sky City Casino. As a government legislation regulates this. In return for a national convention centre, the Government is unashamedly considering changing the law in order to allow hundreds more pokie machines at Sky City. There is evidence that this will increase problem gambling. As well as Reduce the amount of money returned to the local community by gaming machines.

National Convention Centre

In exchange for a 3500-seat,$402 million National Convention Centre, the government is allowing Sky City 230 more pokie machines, 40 more gaming tables, new cashless gambling technology and a 35-year extension to their gambling license. Talks are “commercially sensitive” but the centre will be a major asset for the country. Employing 1000 people to build and a further 800 to run, the centre will also provide a $90m boost to the economy.

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Hobson Street view of the redesigned SkyCity International Convention Centre.

  • »News
  • »SkyCity Reports Full-Year Results from Challenging Year

Almost every company that closed its annual financial books on June 30, 2020 knew that the numbers would be disappointing. The last quarter would have reflected a revenue decrease of some kind due to all nonessential businesses being closed from April through most of June. This was the case in most parts of the world.

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For SkyCity Entertainment, this was particularly true. Gambling companies, especially one like SkyCity with land-based establishments at its core, had to report its last quarter with dramatic revenue drops.

The company’s top executive called the full-year 2019-2020 a “complex and challenging” one. That may be an understatement.

Major Data Points of 2019-2020 Full Year

The coronavirus pandemic hurt SkyCity Entertainment.

  • Normalized revenue of NZ$779.5 million (down 24.3% from NZ$1.02 billion)
  • Normalized net profit after tax of NZ$66.3 million (down 59.7% from NZ$164.6 million)
  • Adjusted EBITDA of NZ$200.7 million (down 37.7% from NZ$322.2 million)

SkyCity wanted to highlight some positive numbers as well.

  • Reported revenue from continuing operations = NZ$1.125 billion (up 36.8%)
  • Total reported revenue = NZ$1.125 billion (up 24.2%)
  • Reported profit from continuing operations = NZ$235.3 million (up 46.3%)
  • Reported total net profit = NZ$235.4 million (up 62.8%)

Other positives in the “key features” section of the report included a “strong balance sheet following implementation of funding” and the on-track expansion of SkyCity Adelaide set to open by the end of 2020. SkyCity also believes the company will show resiliency in the domestic gaming business world when properties reopen.

SkyCity Chief Executive Graeme Stephens said the company took a wide range of actions to mitigate the impacts of Covid-19.

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“We have rapidly restructured our New Zealand workforce, downsizing it by around 25% to ensure SkyCity is positioned to be sustainable in the short to medium term; we have undertaken a capital raising and debt restructure to ensure that SkyCity has sufficient liquidity and funding capacity; and significant operational effort has been focused on closing and reopening our properties with rigorous health and safety measures in place.”

Stephens added that its New Zealand and Adelaide businesses recovered more quickly than they anticipated after reopenings. In addition, its international business should recover well when borders reopen and travel is safe again.

Benefits of Online Casino Business

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Little more than one year ago, SkyCity launched its SkyCityCasino.com website for New Zealand online casino players. It was open for real-money gambling via SkyCity Auckland, which operated the platform, though its base was and remains in Malta.

SkyCity believed that it abided by all New Zealand legal obligations, even using non-traditional methods of advertising so as not to break national laws. While NZ Internal Affairs Minister Tracey Martin was unhappy about the launch and ongoing operations, she had little stable ground upon which to mount an official opposition.

That segment of SkyCity business did quite well during the coronavirus-based shutdowns. With people unable to visit normal gambling establishments in person and many confined to their homes, they took to the SkyCity casino site for entertainment.

Online Casino by the Numbers

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The year-end report showed that the site had more than 35,000 customer registrations as of August 31, 2020.

Stephens noted that the online casino business “ramped up significantly from March 2020 and has now grown into a profitable operation despite the very low-key and conservative approach taken in comparison to other offshore online businesses targeting New Zealanders.”

He added that there was a slight dip in online gaming revenue when New Zealand casinos reopened in May 2020, but a subsequent closure took those players back online.

SkyCity also expects its online casino to do better going forward to “deliver a more meaningful contribution” in the next fiscal year. One of the company’s priorities is to grow and diversify the online casino market in New Zealand as opportunities present themselves.

The annual revenue for the online casino was $4.521 million. This was the first year to document that revenue.

SkyCity Projects Underway

One project that has been moving ahead without delay is the SkyCity Adelaide expansion. In fact, the company indicated that it created nearly 1,000 jobs during the ongoing construction phases. Further, it is recruiting approximately 700 employees to work at the property when it reopens.

Stephens noted that the project is still on budget and on time. The goal to open the new luxury hotel and expanded property by the end of 2020 remains on the table.

The Horizon Hotel will likely not open until 2021, though, and the New Zealand International Convention Center (NZICC) project should be complete by 2023.

Even so, Stephens was careful to note that development opportunities “continue to be refined” and major decisions paused as they face the uncertainties of the coronavirus-influenced near future.

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Other ongoing goals for SkyCity include going carbon neutral in Australia as was already done in New Zealand, reducing waste to landfills, increasing workplace diversity, and addressing the mental well-being of customers and employees.

Sky City Online Pokies Games

On that note, SkyCity is also upping its focus on minimizing gambling harm. By maximizing technological advancements and developing new initiatives aimed at youth, SkyCity plans to continue with these efforts.