SkyCity to be back in the game?

SkyCity would not comment yesterday. Picture / Chris Skelton

Australian casino operators are expected to take a fresh look at SkyCity Entertainment as a potential takeover target after a negative competition ruling across the Tasman.

Gaming giant Tabcorp Holdings yesterday withdrew its proposed takeover of Queensland-based UNiTAB after the Australian Competition and Consumer Commission opposed the acquisition.

Tabcorp, which owns Sydney's Star City Hotel and Casino and the Jupiters Hotels and Casino properties in Brisbane, Gold Coast and Townsville, said it was in a "strong position to pursue new opportunities in international and domestic markets".

Chief executive Matthew Slatter said: "Tabcorp is building on this strong portfolio of businesses and will continue to implement its five-year plan for innovation and growth."

Analysts in Australia and New Zealand said it was likely the company would take a fresh look at SkyCity.

They said Tabcorp had expertise in running casinos, was at home operating in Australasia and the size of SkyCity's operations were attractive in an industry where scale was a factor.

But some believed a takeover by an overseas company could prompt the New Zealand Government to bring the gaming tax of casinos into line with the much harsher Australian laws.

SkyCity would not comment yesterday.

Goldman Sachs JBWere analyst Marcus Curley said the ACCC decision renewed speculation that had been going on for years.

"It leaves Tabcorp without an acquisition of size ... people are concluding that SkyCity is now back on the radar screen of Tabcorp this time."

However, Tabcorp had also looked at operations in Asia.