'Draconian' rules hamper SkyCity

SkyCity Entertainment remains critical of "draconian" regulations to curb problem gambling, but views the appointment of new Gaming Minister Rick Barker as positive.

"We're looking forward with rather more encouragement than we would look back," managing director Evan Davies said of the Government.

He made the remarks at the company's annual shareholders meeting in Auckland yesterday.

He said first discussions with the new Cabinet had left him with a "high level of confidence".

Regulations seeking to curb problem gambling have forced New Zealand's largest casino company to retro-fit slot machines to limit high dollar notes.

By 2007, the next tier of regulations will see new slot machines fitted with technology that intermittently stops play and tallies gamers' losses.

Chairman Rod McGeoch said the industry needed "appropriate, not draconian, regulation".

SkyCity had been a leader in responsible gaming and drinking programmes and the Government needed to acknowledge that.

Davies said SkyCity's 2005 profits were hit harder than expected by bans and restrictions on smoking.

"The impact of the smoking bans [in Auckland] has been somewhat greater than we anticipated and the trend has been for a slower abatement of this effect than we predicted prior to the bans being imposed last December," he said. The ban could affect earnings until 2007.

Shareholders approved Davies' new pay package yesterday. This affords him $2.25 million in share rights and restricted shares over the next three years.