The All Ordinaries Index (ASX: XAO) is up 0.38% in lunchtime trade on Monday.
But ASX All Ords share SkyCity Entertainment Group Ltd (ASX: SKC) certainly isn't joining in the party.
Shares in the New Zealand-based casino and entertainment company closed Friday trading for $2.17. At the time of writing, its shares are swapping hands for $1.81 apiece, down a painful 16.3%.
Here's why investors are hitting the sell button on the ASX All Ords share today.
Why is the ASX All Ords share getting hammered today?
The SkyCity share price is getting slammed today after the company reported New Zealand's Department of Internal Affairs is looking to temporarily suspend SkyCity's casino operator's licence for a period "in the range of 10 days".
The ASX All Ords share holds the casino operator's licence for the SkyCity Auckland, SkyCity Hamilton, and SkyCity Queenstown casinos, all located in New Zealand.
The Gambling Commission will now decide whether to grant the request to suspend the licence. The Commission will also decide how long that suspension would then last.
SkyCity said it could be "a number of months" before any decision is made.
The ASX All Ords share faces the possible license suspension following a February 2022 complaint, made by a gambler at the Auckland casino, who was betting at the venue over a period stretching from August 2017 to February 2021.
According to the Secretary of the Department seeking to suspend SkyCity's licence, the company "did not comply with requirements in its … Host Responsibility Program relating to detection of incidences of continuous play by a customer."
SkyCity said it will "fully cooperate with the Secretary in relation to the application process".
If the Commission opts to suspend the operator's licence, it will not impact on SkyCity's non-gaming segments, including its hotels and restaurant businesses.
The company said it is "committed to maintaining the highest standards of host responsibility best practice". It noted "significant investments and enhancements in its host responsibility controls, technology and resources".
Commenting on the big hit the ASX All Ords share is taking today, managing director of Salt Funds Matt Goodson said investors were more likely concerned with the longer-term outlook rather than the short-term potential licence suspension.
According to Goodson (courtesy of The New Zealand Herald):
The concern, obviously, is not so much any temporary suspension of the licence, if it goes forward. It's what does it signal in terms of the Department of Internal Affairs' attitude to Sky City, and are there other issues that will come out in the wash?
SkyCity share price snapshot
With today's big intraday fall factored in, the SkyCity share price is down 28% over the past 12 months.
The ASX All Ords share is down 21% in 2023.
