Ann: GENERAL: SKC: SKYCITY Reaches Agreement with

• Release Date: 11/10/13 18:03
• Summary: GENERAL: SKC: SKYCITY Reaches Agreement with South Australian Government
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					SKC
11/10/2013 16:03
GENERAL

REL: 1603 HRS SKYCITY Entertainment Group Limited (NS)

GENERAL: SKC: SKYCITY Reaches Agreement with South Australian Government

SKYCITY reaches final agreement with the South Australian Government

SKYCITY Entertainment Group announced today that it has reached final
agreement with the South Australian Government on the detailed terms of the
revised regulatory and taxation environment for the Adelaide Casino.

Following the assent of enabling gambling Legislation in August this year,
the parties have now signed a new Approved Licensing Agreement (ALA) and a
new Casino Duty Agreement (CDA). The terms of the revised regulatory and
taxation environment are contained in those binding contracts and will come
into effect once the remaining conditions precedent are satisfied.

"The signing of these key agreements is an important milestone and paves the
way for SKYCITY to proceed with its A$350 million investment to transform
Adelaide Casino into a world class integrated entertainment and tourism
complex," SKYCITY Chief Executive Nigel Morrison says.

Deputy Premier John Rau said, "This agreement is a step towards Adelaide
Casino becoming a world class gaming and entertainment destination that many
South Australians and tourists will enjoy."

Mr Morrison said, "Once our investment is fully complete, the new and
expanded complex will deliver high-value international and interstate tourism
and create much-needed economic growth and jobs for Adelaide and South
Australia.

"Our world class complex will be an integral part of the new entertainment,
sporting and arts precinct being developed on the banks of the River Torrens,
complementing the redeveloped Adelaide Oval and the new and expanded Adelaide
Convention Centre, helping South Australia attract a greater share of a
lucrative and growing high-value tourist market."

SKYCITY will begin the first phase of this proposed investment in the coming
months, with work commencing on a major refurbishment and reconfiguration of
its current facilities within the historic Adelaide Railway Building. Along
with the introduction of new gaming equipment and technologies, this
investment is expected to total around A$40m.

"The initial investment we are making to improve our existing facilities,
which is anticipated to occur over the course of the next 12 months, will see
the creation of new Premium Gaming areas for Premium Gaming customers from
South Australia as well as visitors from interstate and overseas.  We are
also planning some exciting new dining and bar concepts, which will
significantly enhance our entertainment appeal," Mr Morrison says.

SKYCITY is also introducing new technologies to enhance its host
responsibility capabilities, which are already considered world-leading.

-ENDS-

Key Terms of the New Agreements

The new ALA and CDA agreements will deliver the key concessions previously
announced in December 2012, which are:

oA 20 year extension (to 2035), of Adelaide Casino's South Australian Casino
exclusivity;
oIntroduction of cashless gaming and Ticket-in Ticket-out (TITO);
oIntroduction of Premium Gaming;
oNew gaming tax rates, including lower gaming tax rates for Premium Gaming;
oAn increase in the number of gaming machines to 1,500;
oAn increase in the number of gaming tables to 200, where 15 such tables may
be substituted for 300 automated table game terminals.

The key conditions that remain to be satisfied for the Approved Licensing
Agreement and the Casino Duty Agreement to come into effect are:

oApproval of the final ALA by the Independent Gambling Authority (IGA).
-This is required under section 16(3)(c) of the Casino Act ;
oSKYCITY's satisfaction regarding the final form of the relevant regulatory
instruments to give effect to the new regulatory framework and allow for the
introduction of new gaming systems and technologies; and
oSKYCITY and the State Government reaching an in-principle agreement
regarding tenure and the procedure for the necessary approvals for the new
development site.
End CA:00242282 For:SKC    Type:GENERAL    Time:2013-10-11 16:03:45