SkyCity Proposes 200 Job Cuts as Casino Spending Falls

SkyCity Entertainment Group has begun consulting employees over plans to cut around 200 jobs as New Zealand's largest casino operator responds to weaker customer spending.

Most of the proposed job losses are expected to affect SkyCity's Auckland operation. However, the company has stressed that the consultation process is still underway and no final decisions have been made.

The proposed cuts come ahead of SkyCity's full-year results and follow a difficult period in which the group has already lowered its earnings expectations.

More Visitors Are Spending Less

Perhaps the most interesting part of SkyCity's current situation is that customers have not simply stopped visiting.

Visitation to SkyCity Auckland increased by 4.6% during the six months to December 2025. However, underlying EBITDA generated per visitor fell from approximately NZ$22 to NZ$16.50.

That means SkyCity is attracting more people but generating less profit from each visit.

Group revenue for the period declined 2.4% to NZ$411.7 million, while underlying EBITDA fell 28% to NZ$85.5 million.

SkyCity CEO Jason Walbridge said the economic conditions facing the company were real and required difficult decisions about how the business should be structured for the future.

SkyCity's Key Performance Figures

The figures show why SkyCity's challenge goes beyond simply attracting customers. More people are visiting its Auckland casino, but lower spending per visitor and rising operating costs are putting pressure on earnings.

Cost Pressures Continue to Build

SkyCity has already been attempting to reduce expenditure. By May, the company said it had exceeded its previously announced target of NZ$10 million in cost savings for FY26.

Regulatory changes are another factor. Mandatory account-based gambling has been introduced at SkyCity casinos, requiring customers to use an electronic card or other unique identifier when gambling.

SkyCity previously estimated that mandatory carded play could reduce FY26 EBITDA by between NZ$20 million and NZ$30 million.

SkyCity Looks Towards Online Gambling

The proposed restructure comes as New Zealand's gambling industry goes through a period of significant change.

SkyCity has been preparing for New Zealand's regulated online casino market, although the company cannot yet generate revenue from the new licensing regime.

According to recent reporting, SkyCity has spent around NZ$7 million during FY26 preparing its online gambling operations.

The company is therefore balancing investment in future digital opportunities against weaker spending across parts of its existing land-based business.

For now, the proposed 200 job cuts remain subject to staff consultation. However, the move highlights the pressure facing one of New Zealand's largest gambling and entertainment businesses as customers remain cautious about discretionary spending.