NagaCorp, owner and operator of the massive NagaWorld integrated resort in Phnom Penh, has signed an amendment to its exclusivity agreement with the government that extends its exclusivity in the market by 10 years.
The original deal between NagaCorp and the royal government was signed in 1995 and amended in 2000 and 2005. It granted the company a license to operate casinos in Cambodia for a period of 70 years until 2065 and exclusive rights in and around Phnom Penh until 2035.
The latest amendment extends the latter term through 2045, giving NagaCorp a monopoly on casino operations within a 200-meter (125-mile) radius of the Cambodian capital with the exception of the Cambodia-Vietnam border area, Bokor, the Kirirom Mountains and Sihanoukville.
According to Inside Asian Gaming, the company made a one-time US$10 million payment to the government on signing of the amended agreement. It will also pay US$3 million on an annual basis each year between 2036 and 2045.
“The company believes that the signing of the Agreement and exclusivity extension till 2045 may be viewed as a long-term tourism infrastructure project which may generate recurrent revenue to the company and its shareholders,” NagaCorp said.
“The vision of the group is to build the largest comprehensive, multi-entertainment riverine integrated resort in the world and to position the Group as another gaming powerhouse in Asia Pacific, further securing its firm footing on the competitiveness of the group.”
The extension follows the recent announcement by NagaCorp of its US$3.5 billion Naga3 expansion, which will double the group’s hotel and gaming capacity when it’s complete in 2025.
At that time, the resort complex including Naga1, Naga2 and Naga3 will offer 5,000 hotel rooms, 1,300 gaming tables and 4,500 electronic gaming machines, making it second only to Sands China among Asia’s major IR operators, IAG reported.
