Gambling News by Gambling Headquarters

Four months into the financial year, Sky City Entertainment Group has forecast flat profits in FY07. The projected profit range of $100-$110 million, essentially flat on the 2006 results, has been affected by weaker trading conditions, gambling losses and a stronger New Zealand dollar affecting tax payments. Weaker trading conditions have dragged revenues down at the Auckland gaming and entertainment complex. The Auckland casino has also been unlucky on VIP commission table games. The year to date, after tax results from these games is $9.1 million below what would normally be expected. The recent strengthening of the New Zealand dollar against the Australian dollar has the potential, if sustained, to increase the company's base tax rate for FY07 by up to two percentage points. The projected profit range for FY07 assumes that a 30 percent tax rate will apply and that VIP commission play outcomes will return to normal patterns.