New Zealand Regulations Hurt Gaming Operators

NEW ZEALAND – As reported by New Zealand Stuff: "Official figures out yesterday show increased regulation is hurting gaming operators like Sky City Entertainment.

"Annual gambling statistics, released by the Department of Internal Affairs, showed spending on the main forms of gambling fell by 0.6 per cent from a record high of $2.039 billion in 2003/04 to $2.027 billion in 2004/05.

"Most telling for Sky City was a 2.5 per cent fall in casino gambling to $472 million - the first annual decline since casino gambling started in the early 1990s.

"Sky City has a virtual monopoly on local casinos, and owns the Darwin and Adelaide casinos in Australia, as well as cinemas and hotels.

"…Regulations seeking to curb problem gambling have forced New Zealand's largest casino company to retro-fit slot machines to limit high dollar notes.

"…A ban on smoking, now in place for over a year, was expected to hurt earnings until 2007.

"…Lotteries Commission products dropped by 0.7 per cent and non-casino gaming machines by 0.8 per cent…"