New Zealand’s SkyCity Empire Gets a Boosts from The Australian Market
The New Zealand based gambling empire, SkyCity has received a much needed and a welcome boost from the Aussie market. This is a result of a brand new investment from down under. The owner of the flagship casino of Auckland, SkyCity, had a pretty hard year in 2016. This is because of the ongoing crackdown on the VIP gamblers in China. On the other hand, an equity fund from Australia has stepped in, which came as a much welcomed boost. This is because this boost caused the stake to increase by a 6.25 percent, following a plunge because of China’s gambling crackdowns.
The Australian Boost of SkyCity
The equity fund responsible for this boost is Mutual. This is not the first time this happens, as the firm bought around 2.8 million dollar worth of shares this last October. This was one week before the shares of SkyCity took a plunge following the warnings from the Macau situation. The situation in Macau affected the shares as they are directly connected to SkyCity. This is because several employees of SkyCity are being held in China. They were held because they were illegally promoting Australian gambling to the nationals of China. There are no charges that have been made up to this date. On the other hand, the hardline stance over promoting overseasgambling is scaring many casino operators.
SkyCity’s Shares Drop over Chinese Crackdown
The shares of SkyCity witnessed a drop of almost 12% as the casino bosses issued warnings regarding the stance of the Chinese government on gambling. This is because the Xi Jinping, the authoritarian president of China has been pushing for Macau to change its stance towards gambling. That is not all, as the Chinese government is also cracking down on the cash flow entering Macau. Therefore, a lot of the big casinos have been suffering from a decline of revenue, month to month.
On the other hand, most casinos in the region are trying to take their share of the VIP gamblers. This includes Australia, New Zealand, Singapore and Vietnam. However, any promotion of casinos that are located abroad, in China is forbidden. This is why the employees were held.
SkyCity Assures China Regarding Illegal Gambling Promotions
The crackdown has hit Crown Resorts, as there are still many of its employees in custody in China. Although no charges were made, but the promotion of Crown Casino in China is totally prohibited. SkyCity was eager to keep itself away from the arrest. Therefore, it made a statement saying that SkyCity is sure that its contractors are always complying with the Chinese regulations and laws.
Possible Merger in Australia
There have been many hints during the year that a merger might be in the works. This merger is to be between Star Entertainment and SkyCity, two of the biggest entities in the Aussie market. The Star Casino that is run by Star Entertainment has gone through a renovation project in order to attract the Chinese VIP gamblers.