SkyCity Entertainment Group will spend more than $375 million upgrading its casino in Adelaide after reaching a deal with the South Australia government.
The announcement comes after two-and-a-half years of negotiations and extends SkyCity's exclusive rights in the state to run gaming tables and VIP gaming until 2035.
It will be able to triple the number of gaming machines to 1,500 and more than double the number of gaming tables to 200.
SkyCity will also pay higher taxes on gaming machines and tables.
Chief executive Nigel Morrison says the agreement levels the playing field with regional competitors.
He says it provides the certainty Sky City needs to upgrade the casino, including building a six-star hotel and restaurants.
Mr Morrison says the changes mean the Adelaide casino will have a differential regulatory framework in VIP rooms compared to the main gaming floor, and differential tax rates, which will enable it to be competitive and attract interstate players and international tourists.
SkyCity will also give $A20 million to the state government.
National convention centre
Mr Morrison says New Zealand is missing out on tourist dollars with a decision on the controversial national convention centre facing further delays.
SkyCity proposes building a $350 million Auckland venue in return for more gaming machines and an extension to its license.
The Auditor-General's report on the project, due at the end of the year, has been delayed until January.
Mr Morrison says it's a great shame for New Zealand that the process is taking so much time.
Meanwhile, SkyCity has sold its half stake in Christchurch Casino to co-owner Skyline Enterprises for $80 million, and bought Skyline's 40% share in Queenstown Casino for $5 million to give it outright control.
The company's shares rose 17 cents to close at $3.79 each on Wednesday.
