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Skyline Enterprises is taking its battle with SkyCity Entertainment over ownership of the Christchurch Casino to the gaming industry watchdog, after losing round one.
The Commerce Commission yesterday cleared SkyCity's application to buy a 40.5 per cent stake in Christchurch Casino, saying the deal would not substantially lessen competition in the
casino market.
Though SkyCity was celebrating the win last night, Skyline and Christchurch Casino chairman Barry Thomas may have one more card up his sleeve.
Mr Thomas has been fighting to prevent Aspinall New Zealand, his business partner, selling out to SkyCity for $93.75 million. Skyline Enterprises had tried to buy the stake, but was knocked back.
He has argued the deal would give SkyCity an interest in five out of six casinos, killing competition.
It is understood Mr Thomas has requested a meeting with the Casino Control Authority. The authority can look into any issues governing the fitness of applicants to run casinos. Christchurch Casino could argue that ownership in Christchurch would give the company a stranglehold on the New Zealand market, undermining its suitability to buy in.
SkyCity managing director Evan Davies said the firm also needed Overseas Investment Commission approval because about 30 per cent of its shareholders are overseas investors.
- NZPA
