SkyCity still keen on casino buyout

SkyCity CEO Nigel Morrison. Photo / Richard Robinson.

SkyCity Entertainment is optimistic the Christchurch Casino will be re-opened at its present Victoria St site in May and is still keen to own it outright.

Chief executive Nigel Morrison believes there are good odds the casino will be given the green light soon to refurbish internal damage to the building after the February earthquake.

He is not concerned about the future of the local economy or the amount of disposable income residents will have.

The casino has been closed because of internal damage and about 500 staff offered redundancy.

But Morrison said the property was insured and it was structurally sound.

He hopes it can be up and running in May and even though there are no Rugby World Cup games in the city, there were benefits to be had.

Morrison estimated profits for the casino will be down only about 20 per cent because of the quake, so returns to SkyCity might be expected to fall about $1 million to $5 million.

SkyCity - with casinos in Auckland, Adelaide, Darwin and Hamilton - last year increased its stake in Christchurch Casino to 50 per cent.

It tried unsuccessfully to buy the 50 per cent stake held by Queenstown Skyline Entertainment.

Skyline has tourist interests, including the Rotorua luge. In 2004, the company resisted SkyCity taking its initial 40.5 per cent stake.

The Government had indicated that the site licence could be transferred to a different location.

"It might have been worth taking up but, as it stands, we believe that might not be necessary," Morrison said.

Staff appear to share an optimistic view of the casino's future. They were asked on Saturday to consider using their accrued holidays and then leave without pay until further notice, or taking redundancy.

Christchurch Casino chief executive Brett Anderson said 75 per cent of the one third of staff who replied chose the alternative to redundancy.