US Hospitality Giant Buys Darwin's SkyCity Casino

Darwin's SkyCity casino and resort has been sold to US hospitality giant Delaware North for $188 million.

Australian and New Zealand casino operator SkyCity Entertainment announced it had signed an agreement to sell the resort to the New York-based company while keeping land it holds at Little Mindil, set to be sold sell separately.

The resort, located on 12-hectares alongside the Arafura Sea, was bought by SkyCity for $195 million from US casino operator MGM 14 years ago.

Earlier this year analysts priced the casino complex between $200 and $250 million.

Deleware North will now take ownership of Darwin's only five-star rated hotel and resort which boasts 152-guest rooms, 600 poker machines, more than 30 table games, four restaurants, five bars, VIP "super villas" with gaming suites, a day spa.

The incoming owner plans to retain all 650 staff once the change of ownership takes effect.

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Earlier this year Delaware North acquired two Brisbane-area pubs and gaming venues (The Shafston Hotel and The Aspley Hotel) for more than $30 million, establishing the company’s foothold in Australia's gaming and entertainment industry.

It has Northern Territory resort interests at Kings Canyon in Central Australia and owns the Lizard Island resort in Queensland and is best-known for operating the food and hospitality services at capital city airports, the Sydney Cricket Ground, Marvel Stadium, and at the annual Australian Open tennis tournament in Melbourne.

“Australia has been a second home for Delaware North for 30 years,” Delaware North co-chief executive Louis Jacobs said.

“With SkyCity Darwin, we are expanding our presence in the gaming and entertainment market.”

The hospitality giant owns or operates more than 12 casinos and gaming venues across the United States as well as more than 60 standalone restaurants at high-profile locations such as Rockefeller Center in New York City and Disney in Orlando and Anaheim.

Its Darwin property will now give Delaware North exclusivity over the city’s casino licence until 2036.

“We are a large family business and while we see expansion plans ahead for the Darwin casino it will be business as usual in the short term,” Jacobs said.

“We look forward to working with SkyCity Entertainment Group to welcome their employees at SkyCity Darwin to the Delaware North family.”

The sale, which was managed by Goldman Sachs, is subject to approval from Northern Territory Attorney General and Justice Minister Natasha Fyles.