Oaktree Capital Evaluates Potential Acquisition of SkyCity Entertainment Group
According to local reports,United States-based alternative asset management firm Oaktree Capital Management is reportedly weighing a potential deal to acquire SkyCity Entertainment Group. The strategic interest emerges as the dual-listed casino and hospitality operator navigates a complex landscape of regulatory remediation and financial restructuring across its New Zealand and Australian operations. For Oaktree Capital, the potential transaction aligns with a demonstrated strategy of pursuing undervalued or distressed assets within the Australasian gaming sector.
SkyCity Entertainment has confronted significant operational headwinds over the past year. The company recently agreed to a A$67 million civil penalty with the Australian Transaction Reports and Analysis Centre (AUSTRAC) following anti-money laundering compliance failures at its Adelaide property. Furthermore, the operator’s Auckland precinct experienced a mandated five-day gaming floor closure under an agreed license suspension related to host responsibility matters. These regulatory challenges have necessitated robust compliance overhauls and placed considerable pressure on the company’s financial standing.
In August 2026, SkyCity reported its full-year financial results, revealing a 22.3 percent decline in underlying EBITDA to NZ$181.6 million. Addressing the financial performance, SkyCity Chief Executive Jason Walbridge verified the figures, stating, “We’ve delivered on our earnings guidance provided in May of NZ$181.6 million, which is down 22.3%, or NZ$52.1 million on last year.” To strengthen its balance sheet, the company has suspended dividend payments, initiated a workforce restructure affecting approximately 200 roles, and launched a comprehensive asset monetization program. This program aims to generate up to NZ$300 million in gross proceeds by December 2026 through measures such as the unconditional sale of its Auckland commercial properties.
Oaktree Capital has previously engaged in high-profile interventions, including a $650 million debt refinancing proposal for Star Entertainment Group and a prior funding offer for Crown Resorts. Acquiring SkyCity would present Oaktree with an established portfolio of land-based casinos, the newly opened New Zealand International Convention Centre (NZICC), and a pathway into New Zealand’s emerging regulated online casino market.
