SkyCity Entertainment Group has launched a structured process to assess potential takeover interest in the entire business, following two unsuccessful approaches earlier in 2026. The New Zealand casino operator is pursuing the review as it prepares to enter the country’s regulated online casino market and works toward restoring dividend payments in the 2028 financial year.

Chair Julian Cook announced the decision at the company’s annual general meeting in Auckland on October 21. The board intends to invite proposals from interested parties and provide access to selected due diligence information, allowing potential buyers to assess the business before deciding whether to make an offer.

SkyCity has appointed UBS as its investment banking adviser and Chapman Tripp as its legal adviser. A dedicated board sub-committee will supervise the process.

Cook said the company had received no improved offers or new whole-of-business proposals since the board rejected two unsolicited approaches earlier in the year. Those proposals were non-binding and highly conditional, and the company concluded that they undervalued SkyCity.

“In the interests of shareholders, the Board has decided to seek proposals through a structured process,” Cook said according to Asia Gaming Brief. “This will involve engaging with interested parties and giving them access to some due diligence information to help them develop their proposals. The Board remains confident that our current strategy is robust. However, if a proposal emerges that does deliver greater value for shareholders than that strategy, the Board will consider it carefully. We are now establishing the structure for this process, which will take some time to progress.”

The review will allow SkyCity to evaluate whether a potential acquisition could offer shareholders greater value than the company’s existing strategy. However, the board has warned that the process may not produce a transaction or a formal offer. The company said it would update shareholders when appropriate.

Two licences shape SkyCity’s online expansion

Alongside the takeover review, SkyCity is preparing applications for two licences under New Zealand’s Online Casino Gambling Act 2026. The company confirmed on October 13 that it had secured the right to apply for two licences through the government’s auction, paying NZ$15 million per licence.

The auction result gives SkyCity the opportunity to establish two online casino brands, subject to completing the licensing process. The regulated market is expected to permit 15 brands, and SkyCity has estimated its annual value at more than NZ$1 billion.

Chief executive Jason Walbridge said the company deliberately reduced its target from three licences, the maximum permitted for an operator, to two. The decision reflected its capital allocation priorities and the returns it expects to generate from the investment.

Walbridge believes SkyCity’s established presence in New Zealand could help it compete against other licensed operators. The company has operated land-based casinos for 30 years and expects its existing brand recognition to support its online offering.

The online market is expected to launch in the second half of FY27. SkyCity said preparations for the new regulatory framework were already under way, with Gaming Laboratories International (GLI) approved as a testing laboratory. The company has also identified advertising intensity as an important factor to monitor when licensed brands begin competing for customers.

Earnings pressure and dividend target

SkyCity’s online ambitions come as its land-based operations face weaker trading conditions. For FY26, the group reported underlying revenue of NZ$822.7 million, broadly unchanged from the previous year. Gaming revenue declined 5.9%, reflecting the introduction of carded play across its New Zealand casinos and weaker premium play.

Underlying earnings before interest, tax, depreciation and amortisation fell 22.3% to NZ$181.6 million. Trading in the first quarter of FY27 remained consistent with the final quarter of FY26, according to the company. SkyCity said consumer conditions continued to be subdued in both New Zealand and Australia.

The group expects capital expenditure in FY27 to fall around the midpoint of its NZ$80 million to NZ$100 million range. It has also budgeted NZ$30 million for online licence costs as it advances its applications and prepares for market entry.

SkyCity is targeting NZ$30 million in cost savings during FY27, increasing the planned savings to NZ$70 million in FY28. The company has also set a target of returning to dividend payments in FY28, although it has not issued formal financial guidance while the timing of its online market entry remains uncertain.

Adelaide sale proceeds alongside strategic review

The company’s broader restructuring plans also include the proposed sale of its Adelaide casino. SkyCity has begun a formal sale process after reaching a non-binding heads of agreement with South Australia’s Minister of Consumer and Business Affairs to resolve outstanding regulatory matters.

The agreement includes a fine of A$21 million and follows the company’s earlier indication in September that it was moving toward a sale of the Adelaide operation.

The separate asset sale adds another element to SkyCity’s current strategic review, as the board considers potential interest in the entire group while management allocates capital toward its online expansion.