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NZ Regulations Cause Decline in Casino Performance 2006-01-25
The New Zealand gambling industry has reported that it has seen decreased revenues since the government imposed a new series of regulatory measures. Annual casino industry statistics compiled by a government agency have shown that spending on all forms of gambling fell by .06% from 2004 in 2005.
Gambling spending fell from $2.039 billion in 2003/04 to $2.027 billion in 2004/05. Casino gambling was especially hard- hit by the changes wrought by the new measures. Sky City Enterprises, which is the most important casino company in New Zealand, saw a 3% decline in gambling revenue in its Auckland casino.
The new regulations were put in place in an attempt to deal with problem gambling. New Zealand´┐Żs largest casino company has been forced to re- configure gambling machines to limit high dollar notes.
By 2007, the next tier of planned regulations will be in effect. Slot machines will be fitted with technology that periodically stops games to remind players of their losses. Also, the casinos are expected to see losses from a ban on casino floor smoking.
Shares in Sky City Enterprises stock have fallen significantly in the past few months.
(By Keren)