The New Zealand government has concluded an agreement with SkyCity Entertainment Group to trade construction of a convention center in Auckland for an extended casino license and more slot machines.
In return for the US$330 million facility, which is expected to open in 2017 as a centerpiece of government’s economic revitalization plans, SkyCity’s flagship casino will be allowed an extra 230 machine games and more gaming tables. Its casino license, which was due to expire in 2021, will also be extended to 2048.
The agreement now moves to Parliament for final approval.
Boosters of the convention center say the deal is a windfall for New Zealand’s most populous city and for the country. Economic Development Minister Steven Joyce says it will attract an extra 33,000 conference delegates to Auckland annually, allowing the city to complete with Australia and Asia for business travel.
“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,” SkyCity Chief Executive Nigel Morrison said.
But the agreement, the subject of more than a year of negotiations, is not without controversy.
Opposition Labour Party leader David Shearer has criticized the government for not putting the project out for bid, blasting it as a “backroom deal” for which problem gamblers and society at large will bear the ultimate cost.
“It is wrong, and it’s not the way we do business in New Zealand,” he said. “(Prime Minister) John Key has essentially written a blank cheque for SkyCity. … This trades away the right of a future government to clamp down on problem gambling.”
