Auckland casino operator SkyCity announced it had agreed to build a new NZ$400 million (US$330 million) convention centre in return for extra gaming tables and an extended licence.
Under the deal reached with the New Zealand government, SkyCity said it would foot the bill for the central Auckland convention centre, which is expected to open in 2017.
In return, SkyCity would be allowed to operate an extra 230 gaming machines and its casino licence, which was due to expire in 2021, would be extended to 2048.
SkyCity shares rose 3.4 percent to a five-year high of NZ$4.55 after the announcement.
“(It) delivers a major piece of tourism infrastructure for New Zealand that will boost jobs and tourism and drive long-term economic growth, without requiring funding from taxpayers,” chief executive Nigel Morrison said.
Economic Development Minister Steven Joyce said the centre would attract an extra 33,000 conference delegates to Auckland annually, allowing the city to complete with Australia and Asia for business visitors.
“For years the tourism industry and business sector have been asking for an international-sized convention centre to be built in New Zealand,” he said.
Opposition Labour Party leader David Shearer criticised the government for not putting the convention centre proposal out to tender, accusing Prime Minister John Key of reaching a “backroom deal” with the casino operator.
“This trades away the right of a future government to clamp down on problem gambling,” he said.
“It is wrong and it’s not the way we do business in New Zealand. John Key has essentially written a blank cheque for SkyCity.”
Auckland's SkyCity casino strikes deal with gov't
