(AsiaGameHub) –   SkyCity Entertainment Group has expressed growing apprehension regarding its FY26 performance, citing the negative impact of macroeconomic pressures on trading and visitor volumes since March.

The casino operator noted that broader economic instability is dampening consumer discretionary spending across New Zealand and Australia, leading to increased uncertainty for its FY26 outlook.

Specifically, SkyCity pointed to rising fuel costs as a significant operational burden. While its Auckland and Adelaide properties have experienced the most notable declines in footfall, this trend has not yet impacted its venues in Hamilton, Queensland, or its current NZICC bookings.

In a formal statement, the company remarked: “New Zealand’s economic climate has been difficult for some time. SkyCity has taken various steps to address these conditions, successfully surpassing our initial target of NZ$10m (roughly €5m) in cost savings for FY26.”

“SkyCity is now launching further cost-reduction measures across its business and corporate divisions, and is bringing in external consultants to assist with this initiative.”

Updated guidance

SkyCity has provided the following revised guidance for FY26, assuming that trading conditions and fuel prices remain largely stable for the remainder of the financial year:

• Underlying EBITDA – $180m-$190m (down from the previous $190m-$210m).
• Reported EBITDA – $155m-$165m (down from the previous $170.6m-$190.6m).

The operator also announced it has signed a non-binding heads of agreement to sell its 99 Albert Street office building and Victoria Street investment properties as part of its asset disposal strategy, pending standard conditions. Financial details of the transaction were not disclosed.

Additionally, as part of its asset monetization efforts, SkyCity is inviting expressions of interest from potential buyers for The Grand Hotel.

SkyCity welcomes online casino regulation

This updated guidance coincides with the New Zealand Online Casino Gambling Act 2026 receiving Royal Assent, which establishes a regulatory framework for the nation’s online gambling sector.

The licensing process will involve three stages, with up to 15 online casino licences available for auction. The market is set to open on 1 December of this year, and by 1 June 2027, only licensed operators will be permitted to provide services in the country.

Online casinos operating in New Zealand prior to 1 May 2026 may continue until 1 December 2026, provided they cease all advertising to New Zealand residents.

SkyCity stated: “SkyCity welcomes the commencement of the Online Casino Gambling Act 2026 on 1 May 2026. The DIA has indicated that it expects to begin issuing licences from early 2027.”

Entain Australia & New Zealand has also signaled its intent to secure a New Zealand online casino licence, with CEO Stella David confirming during the group’s 2025 full-year earnings call that the company plans to pursue three licences.

Meanwhile, several operators, including bet365, SkyCity Entertainment, and Super Group, are facing collective legal action in the Auckland High Court regarding past gambling activities.