KEY POINTS:
SkyCity's Adelaide Casino is taking the South Australian Government to court over what it believes to be a breach in commercial agreement in relation to tax charges.
The casino operator issued joint court proceedings in conjunction with the South Australian TAB in December. An initial hearing date in the Supreme Court is set for February 27.
In a statement yesterday, SkyCity said both it and the TAB had negotiated agreements with the state government to set taxes and charges when they first invested in South Australia.
Last year the state parliament brought in law changes which meant that both companies would have to pay more taxes for monitoring and licensing of gambling in their facilities.
SkyCity Adelaide, which made a A$17.9 million ($20.5 million) operating profit last year, pays 44.5 per cent of its machine revenue and 12 per cent of its table game revenue to the state government. In 2004 it also began paying a fee of A$900,000 per year for its licensing through the government's Office of Liquor and Gambling. The law change means that the fee would go up by A$300,000 per year.
SkyCity said it volunteered to pay the licensing fee and the government should stand by its initial agreements.
"As the highest taxed, monitored and regulated casino in Australia, SkyCity Adelaide seeks confirmation that the government will stand by its contractual commitments." it stated.
But a spokeswoman for South Australia's gambling minister Paul Caica said the government had decided to increase the fee so that taxpayers would not have to pay for monitoring and licensing gambling.
She said the casino already paid two thirds of the bill and the increase would mean it paid the entire cost of licensing itself.
SkyCity proposed selling the Adelaide casino, which is its second biggest after Auckland, in July because it was underperforming.
It put the sale on hold in October after receiving takeover interest which has yet to result in an offer.
