Casablanca Casino closed since February ’16
In February 2016, Australia-listed casino investor Frontier Capital spent US$26 million to buy Stotsenberg Leisure Park and Hotel Corp., a company that came with the Hotel Stotsenberg and Casablanca Casino in the Philippines’ Clark Freeport Zone. Almost 18 months later, though the 239-room hotel is operational, the casino is still closed as the firm looks for money to pay the escrow required by the Philippine Amusement and Gaming Corp.
In a filing, the company stated that it is required by the regulator to settle an escrow account of PHP225 million (US$4.5 million). The account “provides security that the casino remains committed to further development and compliance of all regulations as determined by PAGCOR,” according to an earlier filing. The escrow was once covered by a bank guarantee that has since lapsed, said Frontier Capital.
Trading of Frontier Capital shares on the Australian Securities Exchange has been suspended since February 15, 2016, reported GGRAsia. It’s expected to resume when the money is paid and the Casablanca Casino opens.
For full-year 2016, Frontier Capital recorded a net loss of AUD41.4 million (US$32.8 million), including a goodwill impairment of AUD39.1 million related to the acquisition of Stotsenberg Leisure Park and Hotel Corp., reported GGRAsia.
