SkyCity launches structured review as it secures two NZ online casino licence application rights

SkyCity Entertainment Group has launched a structured review to evaluate proposals for the acquisition of the entire group while continuing with strategic changes and preparing to enter New Zealand’s regulated online casino market. The initiative was disclosed by chair Julian Cook at the annual general meeting in Auckland on 21 October 2026 and follows approaches received during 2026.

Group structured review

The board explained that during 2026 it received two unsolicited, non-binding proposals but did not progress either because the offers did not appropriately value the group and contained concerning conditions. Since then no improved offers or new proposals for the whole business have been received, although the board acknowledged continuing interest and decided to invite interested parties to submit proposals through a more structured process.

The procedure will enable selected parties to review relevant information and conduct due diligence before deciding whether to submit a proposal. The board made clear that the review does not guarantee a transaction, a formal takeover offer or a change of ownership. Any proposal will be assessed against the company’s existing plans and the interests of its shareholders.

“The structured review does not guarantee a transaction or a change of ownership,” Julian Cook said at the meeting on 21 October 2026.

To oversee the process, SkyCity has appointed UBS as its investment banking adviser and Chapman Tripp as legal adviser. The board has also established a Structured Review sub-committee to guide the initiative over coming months. The company has not set a timetable to conclude the review; accordingly, the process should be regarded as exploratory and not as confirmation of an imminent sale.

Separate sale process for the Adelaide casino

Separately from the group review, SkyCity has initiated a formal sale process for its Adelaide casino business. The strategic review of the Adelaide asset was announced in August 2026 after interest from potential buyers, and the company confirmed in October 2026 that the formal sale process was under way.

UBS is also leading the Adelaide sale process, which is independent of the group-wide review. A transaction involving Adelaide would be an asset sale; a sale of the group would encompass all operations.

The Adelaide process runs alongside resolution of outstanding regulatory matters in South Australia. In June 2026 SkyCity and its Adelaide subsidiary signed a non-binding heads of agreement with the state regulatory authorities in relation to issues arising from an independent review. The proposed settlement includes a penalty of A$21 million and additional governance, compliance and operational undertakings. The company said it was progressing towards a binding agreement but has not confirmed that the sale of Adelaide will complete.

Online casino licences in New Zealand

SkyCity confirmed on 13 October 2026 that it successfully participated in the auction for the right to apply for two online casino licences under the Online Casino Gambling Act 2026. The auction result grants SkyCity the right to proceed to the application stage; it does not mean operational licences have been granted.

Each licence carries a fee of NZ$15 million excluding GST, so the combined cost for the two licences is NZ$30 million. SkyCity opted to pursue two licences rather than the maximum permitted three, citing capital allocation priorities and a focus on risk-adjusted returns. If the applications are approved, the company expects to operate two of the 15 brands permitted under the regulatory framework.

Chair Julian Cook estimated the market could exceed NZ$1.0 billion in annual value, and chief executive Jason Walbridge expressed confidence in the company’s competitive capability. SkyCity expects the regulated market to open in the second half of FY27, although the exact date of its own launch remains undecided.

Gaming Laboratories International (GLI) has been approved as the independent testing services provider for the new market while regulators finalise technical requirements. SkyCity has also said it will closely monitor advertising activity once the market is operational, as promotional spend and competitive intensity could affect customer acquisition costs.

“I am confident in our ability to compete in the regulated market,” Jason Walbridge said after the 13 October 2026 auction.

Financial results and cost savings

For the year ended 30 June 2026 SkyCity reported underlying revenue of NZ$822.7 million, effectively flat year on year (-0.3%). Gaming revenue fell by 5.9%. Underlying EBITDA decreased 22.3% to NZ$181.6 million. The company attributed the pressure to the introduction of carded play in its New Zealand casinos and to softer activity in the premium segment.

SkyCity is targeting NZ$30 million of savings in FY27, rising to NZ$70 million in FY28. Capital expenditure is expected around the midpoint of the previously communicated range of NZ$80 million to NZ$100 million. The NZ$30 million cost of the rights to apply for two online licences represents an additional financial commitment.

The company did not declare a final dividend for FY26 and has linked its dividend policy to progress on financial and operational targets, with the intention to resume payments in FY28 if those targets are met. SkyCity has not issued formal guidance for FY27 due to uncertainty around the timing of entry into the online market and macroeconomic conditions.

What remains to be decided

SkyCity faces key strategic decisions during the remainder of FY27: whether acquisition proposals emerge that the board considers attractive, the outcome of the Adelaide sale process, the approval of its online licence applications and the effectiveness of the cost-savings programme. Until verifiable corporate announcements are made, SkyCity’s ownership structure remains unchanged.