SkyCity Opens Takeover Talks as Online Casino Plans Accelerate

SkyCity Entertainment Group has started a structured process to assess possible interest in the entire company after two unsuccessful takeover attempts earlier in 2026. The New Zealand-based casino operator aims to restart dividend payments in its 2028 financial year as it prepares to enter the country's regulated online casino market.

Chair Julian Cook announced the decision at the annual general meeting in Auckland on 21 October. The company will invite interested parties to submit bids and give selected parties access to preliminary due diligence information, allowing potential buyers to evaluate the business and decide whether to make an offer.

SkyCity has appointed UBS as investment banking adviser and Chapman Tripp as legal adviser for the process. A dedicated subcommittee of the board will oversee it.

Cook said that since the board rejected two unsolicited offers at the start of the year, no higher offer or new whole-company proposal has been received. He noted that those offers were non-binding and subject to many conditions, and said the company believed they undervalued SkyCity.

The company maintains that its current strategy is sound but said it would carefully consider any proposal offering greater value. Management warned that the process may not result in a transaction or a formal offer.

Meanwhile, SkyCity is preparing applications for two licences under New Zealand's Online Casino Gambling Act 2026. On 13 October, the company announced that it had won the right to apply for two licences in a government auction, paying NZ$15 million per licence.

The regulated market is expected to permit 15 brands, and SkyCity estimates the market's annual value will exceed NZ$1 billion. Chief executive Jason Walbridge said the company has limited its target to two licences rather than the three an operator is allowed.

SkyCity has run physical casinos in New Zealand for 30 years and believes this recognition will support its online brand. The online market is expected to open in the second half of the 2027 financial year. Meanwhile, the physical operations are weakening: the group reported adjusted revenue of NZ$822.7 million for the 2026 financial year, and gaming revenue fell 5.9 percent.