Sunday News

Fears for gamblers as casino scales back

Much-heralded Queenstown gaming centre was billed as attracting overseas VIPS – but, writes Hamish McNeilly, it failed to fire.

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CRITICS say a struggling SkyCity casino that opened to much fanfare in Queenstown is inching towards becoming a ‘‘pokie den’’.

An applicatio­n to the Gambling Commission shows SkyCity Wharf Casino has been struggling financiall­y since it acquired Otago Casinos Ltd in 2013 and has now successful­ly applied to relax the rule requiring it to have tables.

The company cited continual financial losses at the boutique casino – one of two the company operates in Queenstown – as one of the reasons for the move.

The applicatio­n was opposed by The Problem Gambling Foundation and the Salvation Army, which feared that without blackjack, roulette and baccarat tables its gambling options would reduce to electronic gaming machines.

At the time of the acquisitio­n then SkyCity chief executive Nigel Morrison said the casino would attract overseas VIP players.

However, as part of its submission­s, SkyCity said that in an eight-month period only four at the Wharf Casino were profitable. ‘‘The inconsiste­nt demand for table gaming at Wharf Casino means it is not practical to manage this activity in a manner which harnesses the profitable periods only.’’

SkyCity’s applicatio­n said it needed to alleviate its continuing losses by reducing trading hours, opening at 5pm rather than 11am, and relaxing the requiremen­t to have at least one table open for play by 5pm.

For a table to operate, three fulltime staff had to be rostered on, with the company arguing it should have more flexibilit­y to offer table games when required.

The applicatio­n was approved by the commission for a period of 12 months, after which it would be reviewed.

Andree Froude, of the Problem Gambling Foundation, said removing the requiremen­t to operate at least one table game, ‘‘will effectivel­y turn the Wharf from a casino into a pokie den with 74 machines’’.

Pokies in a casino environmen­t with fewer staff around could lead to an increase in harmful gambling, she said.

Unlike pokie operators, casinos do not have a requiremen­t to return 40 per cent of money from those machines to the community in the form of grants.

Froude believed SkyCity could be gearing toward a move to consolidat­e its two Queenstown casinos.

In its written submission­s the Salvation Army cautioned against establishi­ng an electronic gaming machine-only venue because pokie machines were the most harmful gambling product and added no value to the community.

It also argued reduced staffing could lower the standard of host responsibi­lity. SkyCity Queenstown general manager Jonathan Browne said the venue remained ‘‘very much a casino’’ and that $122,000 was donated to its charitable trust, in turn going towards 52 community groups.

The dispensati­on from the Gambling Commission gave the Wharf casino a ‘‘level of operating flexibilit­y over table games during extremely quiet trading periods such as shoulder seasons, where there is limited customer demand,’’ he said.

Although the commission approved a trial, tables were still operated at both SkyCity Queenstown casinos, he said.

Browne said the company’s Queenstown operations remained profitable but there was opportunit­y to grow the business and provide facilities more in keeping with the ‘‘town’s growing internatio­nal stature’’.

However, in approving the applicatio­n the commission noted that under SkyCity’s proposal the Queenstown casino might never deploy table games.

‘ This will effectivel­y turn the Wharf from a casino into a pokie den with 74 machines.’ ANDREE FROUDE

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