Casino 'sells out' Waikato region

The Perry family are satisfied that the casino has settled in as part of the Hamilton community. Picture / Amos Chapple

When Hamilton's Sky City Casino was first proposed, Perry Developments said it would be locally owned with the region's interests at heart.

Yesterday, local ownership ended.

Perry Developments has sold its 30 per cent stake to Sky City Entertainment, which owns Auckland's Sky City Casino, for $33 million.

Russ Rimmington, former mayor and leader of the lobby which opposed the casino all the way to the Appeal Court, said Perry Group needed to re-read the proposition they made to the city when the project was first discussed.

"I remember it chapter and verse," Mr Rimmington said.

It was going to be local, he said, and was sold as a local family business putting money back into the Waikato and Hamilton city.

"I think we've been sold down the creek, actually."

The casino, which opened three years ago, was originally owned by Tainui Group Holdings, which held 15 per cent, Perry Group and Sky City Entertainment, which managed the operation.

Sky City bought out Tainui for $10.5 million last year and the sale of Perry Group's shares means Sky City now owns the operation.

Labour MP Dianne Yates, also part of the opposing group, also said Perry Group had promised that the casino would be locally owned.

"If people were supporting it on the undertaking that Perry were going to control it then I believe people will be highly disillusioned."

Trustee for Riverside Trust, which owns the Perry Group shares, Christine Grice, said the development was designed to be locally owned but the Perry family were satisfied that the casino was bedded down and had a community focus.

"It [Perry Group] never made any commitment to tenant forever. It always wanted to make sure it was settled in as part of the Hamilton community and it was a casino that was sympathetic to Hamilton and it is."

She said Sky City had been running the casino anyway and was a majority shareholder.

The Sky City Hamilton Community Trust, established to return funds from the casino to the community, would be maintained, she said, with trustees all from the area.

Sky City has also bought the buildings from Perry Group for $4 million.

All but two of the original tenants have moved out, blaming a lack of foot traffic, business and high rent.

The sale is subject to regulatory approvals, expected by July.