SkyCity Adelaide pays more than $40 million to settle lengthy loyalty points squabble

Adelaide gained National Park City status in 2021. Photo / Joe Nes

SkyCity Entertainment Group’s Adelaide business has paid A$38.1 million (NZ$42m) to settle what it today called a long-running contractual dispute.

SkyCity Adelaide accepted an offer from the Treasurer of South Australia to fully and finally resolve the long-running contractual dispute, it said.

That was over the treatment of loyalty points converted to gaming machine play for the purpose of calculating casino duty at the Adelaide casino, as well as associated legal proceedings, the company said in an NZX announcement.

The offer requires the casino business to pay A$13.1m of additional casino duty, A$24.8m in interest and A$200,000 of the treasurer’s costs.

The payment totalling A$38.1m encompasses casino duty return periods from January 2014 to January 2024.

That brings to an end the long running contractual dispute between the parties that resulted in the parties becoming involved in legal proceedings.

Jason Walbridge, SkyCity CEO, said: “This has been a long-running matter involving highly technical tax issues regarding the calculation of casino duty and the interpretation of the agreement.

“SkyCity is pleased the matter has been resolved and will continue to work with RevenueSA to ensure a cooperative and constructive relationship.”

The parties expect to finalise a settlement agreement on the offer shortly.