SkyCity’s online license rationale strategic rather than financial, say analysts

SkyCity Entertainment Group is one of 11 entities confirmed this week to have earned the right to apply for online casino licenses in New Zealand, however investment firm Forsyth Barr has warned the project could be “net present value (NPV) neutral” with rate of return broadly in line with cost of capital. The New Zealand-based integrated resort operator, whose assets include SkyCity Auckland, two smaller casinos in Hamilton and Queenstown plus SkyCity Adelaide in Australia, has secured the right to apply for two online licenses, which at a cost of NZ$15 million per license would see it required to pay…