SkyCity Entertainment Group has raised its concern level for FY26 after its trading and visitor numbers have been impacted by macroeconomic conditions since March.
The casino operator said in a statement that wider economic disruptions are ‘affecting consumer discretionary spending’ in New Zealand and Australia, creating ‘uncertainty’ for its FY26 trading outlook.
In particular, SkyCity highlighted increasing fuel prices as having a major impact on its operations. The company’s venues in both Auckland and Adelaide have felt the biggest impact from a drop in visitor numbers, although the same effect has not yet extended to its properties in Hamilton, Queensland or its existing NZICC bookings.
In a statement, it said: “New Zealand’s economic environment has been challenging for some time. SkyCity has implemented a range of measures in response to these conditions and we have exceeded our previously announced target of NZ$10m (approximately €5m) in cost savings for FY26.
“SkyCity is now initiating additional cost-saving initiatives across its operations and corporate functions and is engaging external advisors to support this process.”
Updated guidance
SkyCity has listed the following guidance for FY26, based on trading conditions since fuel price increases remaining broadly consistent for the remainder of the financial year:
- Underlying EBITDA – $180m-$190m (previously $190m-$210m).
- Reported EBITDA – $155m-$165m (previously $170.6m-$190.6m).
The operator also stated that it has entered into a non-binding heads of agreement for the sale of its 99 Albert Street office building under its asset monetisation programme, together with Victoria Street investment properties, subject to customary conditions. The financial terms of the deal have not been specified.
As part of the asset monetisation programme, SkyCity added that it is also seeking expressions of interest from potential investors in acquiring The Grand Hotel.
SkyCity welcomes online casino regulation
The FY26 guidance comes as the New Zealand Online Casino Gambling Act 2026 becomes official following Royal Assent, regulating the country’s online casino market.
Up to 15 online casino gambling licences will be up for auction in New Zealand as part of the three-stage licensing process. The market is scheduled to launch later this year on 1 December. Then, on 1 June 2027, only online casinos that hold a licence will be allowed to operate in the country.
Any online casinos active in New Zealand before 1 May 2026 can continue to operate until 1 December 2026, but are prohibited from advertising to people in New Zealand.
SkyCity said: “SkyCity is pleased to note that the Online Casino Gambling Act 2026 comes into effect from 1 May 2026. The DIA has now advised that they anticipate they will start to issue licences from early 2027 onwards.”
Entain Australia & New Zealand is another operator that has expressed interest in acquiring an online casino licence in New Zealand, with Stella David, Chief Executive Officer of Entain, stating during the group’s 2025 full-year earnings presentation that the company would be seeking three licences.
However, several operators also face coordinated legal action in New Zealand, with claims filed against bet365, SkyCity Entertainment and Super Group in the High Court in Auckland on retrospective gambling activities.
