KEY POINTS:
Sky City Entertainment Group said today it had received an lengthy licence extension for its Darwin casino from the Northern Territory Government.
In 2011, and at intervals of five years, the licence term is subject to extension for a further five years, depending on meeting set standards.
"The market has been looking for certainty on this," a spokeswoman said.
The extension formula means that the term of the casino licence will, at any time, be not less than 15 years and up to 20 years.
Exclusivity of the casino licence in the Northern Division of the Northern Territory (Darwin and the adjacent region) continues under the agreement.
A condition of the licence extension is that Sky will commit A$30 million ($34.5 million) in capital spending to extend and improve the facility.
Sky said it was happy to comply with that.
Expansion of the existing complex to accommodate revenue growth and to position the business for the future reflected the confidence which Sky in the property's potential.
In October 2006, the Northern Territory Government announced that Sky was the preferred tenderer for the Little Mindil site adjacent to the existing Darwin facility.
The final terms and conditions for the acquisition of the Little Mindil site are currently in negotiation.
Sky shares were unchanged on $5.18 after the announcement. The shares have under-performed the market in the last six months - dropping from 6 per cent while the benchmark index has gained 8 per cent.
- NZPA
