The Adelaide casino of SkyCity has been able to extend its licence by 20 years and the company will also be allowed to operate 500 extra gaming machines.

The approval comes after the South Australian Government altered the gambling laws in the state. The government has reached an agreement with the opposition to halve the limits for gaming machines but allowed to maintain the number of machines and venues before the new bill was passes.

The Statute Amendment (Gambling Reform) Act 2013 was passes to amend the existing Casino Act 1997. It will allow the legislative changes necessary for SkyCity and the South Australian Government to amend the new Approved Licensing Agreement and Casino Duty Agreement.

SkyCity is planning to invest $A300 million to transform the Adelaide Casino and create a six star hotel, which will be the first in the city. The hotel will emerge as the world-class entertainment complex in the city and is expected to attract tourists.

Nigel Morrison, Auckland-based SkyCity chief executive said, “This enabling legislation will allow SkyCity to conclude its agreement with the South Australian Government regarding the future regulatory, taxation and exclusivity framework facilitating the transformation of SkyCity's Adelaide Casino into a truly world-class integrated entertainment complex.”