SkyCity resolves tax dispute with SA Treasurer
SkyCity and the Treasurer have settled a long-running dispute over unpaid taxes, with the casino to pay nearly $25 million in interest.
After the High Court last year ruled in favour of the South Australian Treasurer’s interpretation of how the casino pays taxes to the state government, SkyCity has settled its dispute with the government.
SkyCity Adelaide will now pay $13.1 million of additional casino duty and $24.8 million in interest.
The company will also pay $200,000 of the Treasurer’s costs, with the total payment encompassing casino duty return periods from January 2014 to January 2024.
“This has been a long-running matter involving highly technical tax issues regarding the calculation of casino duty and the interpretation of the agreement,” SkyCity CEO Jason Walbridge said.
“SkyCity is pleased the matter has been resolved and will continue to work with RevenueSA to ensure a cooperative and constructive relationship.”
Treasurer Stephen Mullighan welcomed the settlement.
“It’s pleasing to see that SkyCity has agreed to meet its tax obligations to South Australians and pay $13.1 million of additional casino duty and $24.8 million in interest, as required under the Casino Duty Agreement,” he said.
“While it’s frustrating that SkyCity engaged in such a lengthy, time-consuming, and expensive legal process, SkyCity Adelaide will also pay $200,000 of the state government’s legal costs.”
The case involved the interpretation of relevant provisions in the Adelaide Casino Duty Agreement 1999 – specifically how to determine the treatment of loyalty points converted to gaming machine play and the deduction of loyalty points earned for the purpose of calculating casino taxes.
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The complex legal case was entered into by both parties as they sought clarification from the South Australian judiciary on how to interpret the relevant provisions.
In February 2024 the South Australian Court of Appeal ruled in favour of the Treasurer of South Australia’s interpretation of the Casino Duty Agreement and found that “credits on gaming machines arising from conversion of loyalty points, when played by customers, are to be included in gaming revenue for the purpose of calculating casino duty”.
SkyCity then appealed the decision to the High Court, which also sided with the Treasurer.
“The High Court has confirmed the Court of Appeal’s interpretation of the Agreement finding that credits on gaming machines arising from the conversion of loyalty points, when played by customers, are to be included in gaming revenue for the purpose of calculating casino duty at the SkyCity Adelaide casino,” SkyCity said in October.
SkyCity put $13.1 million aside in 2024 in case it was forced to pay the state Treasury the unpaid taxes but has not recognised a provision for the potential exposure to the penalty interest payment “as there remain a range of potential outcomes and no present obligation exists”.
