The South Australian Independent Gambling Authority expressed concerns that if SKYCITY fails to expand its Adelaide Casino, this would have a much worse effect on the struggling property than no expansion at all. In addition, the Authority noted that there is indeed risk for the expansion project not to be completed.
The government of South Australia and SKYCITY, the gambling operator in charge of the Adelaide-located casino, are currently negotiating the future of the proposed A$300-million expansion plan. The gambling venue is planned to be turned into one of the highlights of the redeveloped Riverbank precinct in South Australia’s capital.
Officials announced back in March that the neglected space is to be renovated and a number of different facilities, including a 24-story office tower, are expected to be added. The precinct is to also have its Festival Center revamped.
Alan Moss, Presiding Member of the Independent Gambling Authority, said that the regulatory body is working closely with SKYCITY on the proposed expansion. Mr. Moss noted that the Authority is supportive of the plan but understands the risks that may arise mainly due to the somewhat disappointing financial performance of the venue. The official further explained that the gambling operator should complete the project and that no expansion would be better for the struggling casino than a failed expansion.
SKYCITY revealed to the public that its annual results for the previous financial year were a bit disappointing as earnings dropped by A$27.3 million year-on-year. The gambling operator also noted that it was really close to finalizing its concept for the expansion and that the future upgrade would integrate with certain other developments.
Earlier this year, South Australia’s Deputy Premier, John Rau, noted that the Government is ready to progress the Riverbank precinct development without the SKYCITY project and that the gambling operator really needs to provide detailed plans of the future expansion of Adelaide Casino, if it wants its gambling venue to be included in the overall redevelopment of the area.
Mr. Rau told local media that negotiating with the gambling company are ongoing and expressed hope that the discussions will be concluded anytime soon. Thus, construction works on the important renovation project will be able to commence.
As mentioned above, the state government announced plans for the Riverbank precinct redevelopment back in March. The Walker Corporation is in charge of the A$600-million project and its completion is expected to take up to three years, in case everything goes as planned.
