SkyCity Adelaide’s $300 million redevelopment project was originally scheduled to be completed by 2018 – but, things have not gone according to plan. Recently, the casino operator has had to push back the grand re-opening of the casino, as the project has been delayed by over a year.
The casino operator has only stated that the SkyCity Adelaide expansion will be delayed but has not cited a particular reason for it. As such, gaming industry specialists are speculating. One assumption is that the planning approval process has been delayed by the development of the Festival Plaza by Lang Walker. The project will cost $1 billion, and it will mark the first time in 40 years that the area will undergo redevelopment. Since the Festival Plaza renovation will take place in the same area as the SkyCity Adelaide expansion, so it is likely that the two ventures are conflicting.
Another assumption is that SkyCity simply does not have the finances to support the project. Recently, the casino operator has launched a capital raising effort that aims to generate funding for the company and its upcoming projects. SkyCity will be offering shareholders the opportunity to purchase a single share for every 10 that they have at the price of $4.40. This will allow the operator to keep their core business asset while raising the funds needed to continue its expansion plans and operational costs.
The expansion of SkyCity Adelaide will greatly boost the economy in South Australia. With 80 luxury hotel rooms and VIP gaming suites, the casino aims to attract wealthy visitors from around the world to help generate more tourism dollars. The gaming floor will be expanded to include 500 new pokies and 100 new table games, which will further boost gaming revenue. Overall, the expansion will generate new jobs for local residents.