The High Court of Australia has dismissed an appeal from SkyCity, concluding a lengthy legal dispute over the calculation of casino duties at its Adelaide resort. The case centered on the treatment of loyalty points converted into gaming machine credits and their inclusion in gaming revenue for determining casino duty.
The court confirmed that when loyalty points are converted into gaming machine credits and played by customers, they must be included in the total gaming revenue. This ruling means that SkyCity must account for these credits when calculating its casino duty at the Adelaide venue.
As a result of the ruling, SkyCity had already set aside AU$13.1 million (US$8.76 million) to cover the additional casino duty. However, the company may also face interest payments on the outstanding duty, which could amount to approximately AU$25.3 million.
SkyCity CEO Jason Walbridge acknowledged the complexity of the case, stating: “This is a long-running matter involving highly technical tax issues regarding the calculation of casino duty. Given the complexities, both parties decided to seek declaratory relief through the court. We look forward to the resolution of this matter and will continue to work with RevenueSA to achieve this.”
In other developments this week, the Australian Leisure and Hospitality Group (ALH) was fined by the Victorian Gambling and Casino Control Commission (VGCCC) for allowing underage gambling in several of its venues. This incident highlights ongoing concerns regarding regulatory compliance within Australia’s gaming industry.