SkyCity Says That Casino Tax Amount Will Be Lower Than Expected
One casino operator in Darwin is very happy that the tax impost they will be paying is going to be smaller than what they first expected. SkyCity Entertainment Group, one of the leading hotel and casino operators in the region, stated that after Australia's Northern Territory government finished reviewing the amount of taxes they will charge, their operating costs won't increase by much. Taxes on gaming establishments have been a controversial issue all over Australia during the past year, with many casino operators expressing concerns that they would have a significant impact on their bottom line at a time where many of their establishments were struggling to stay profitable.
The company has previously believed that increases in casino levies could cost them close to $6 million more each year. However, with the recent information they've received from the government, they now estimate that the community benefit levy charged to casino operators in the state will only add $1 million per year to their total costs of operating SkyCity.
The community benefit levy, which has started on July 1st, seeks to help the government fund a wide range of community projects which benefit the people of the Northern Territory, promote awareness and education programs to counter the effects of problem gambling on individuals and their families, as well as fund research into gambling activity in the state and the impact that it can have on the community. All casinos in the Northern Territory are now required to pay the levy.
SkyCity says that should there be changes to the levy over the coming decade, they will be able to offset various licensing and regulatory fees against it.
Despite the success of many of their efforts to bring in new customers, things haven't always been smooth for SkyCity's Darwin casino. The company has been experiencing market conditions that many would qualify as challenging. The casino located in Darwin has managed to generate revenue totaling A$73.1 million in the six months which ended on December 31st 2014. The company's financial reports indicate that the earnings for the casino before interest, tax, depreciation and amortization were of A$21.6 million.