Resort plans additional EGMs
Cambodian casino operator NagaCorp Ltd. has announced a 10-year deal to lease a 300-unit electronic gaming machine business at its flagship NagaWorld resort in Phnom Penh, according to GGRAsia. The company says “four independent third parties” will help it maintain operations of the EGM business.
NagaCorp will get a 70 percent cut of the revenue and the investors will get the remaining 30 percent, said a NagaCorp filing to the Hong Kong Stock Exchange. The filing added that the outside investors expect increases in mass-market Chinese visitors to Cambodia.
Data from Cambodia’s Ministry of Tourism indicates tourism from Mainland China increased 14.9 percent year-on-year in the first quarter of 2015. On April 1, NagaCorp announced that gross revenue from electronic games rose 8 percent for the first quarter to US$48.0 million.
Under the new EGM management deal, the four investors will pay US$40 million to NagaCorp, and an additional US$10 million “at a later date and in joint consultation with Naga,” to purchase “state-of-art EGMs.”
The outside investors include Cambodian firms Top Summit Garment Inc.; Jin He Tai Construction Co. Ltd.; CMC Phnom Penh Import Export Co. Ltd.; and “an individual referred to only as ‘Jinfu’ and said to be the owner of Central Asia Group Co Ltd.,” reported GGRAsia. Central Asia Group is a Guangdong-based electric light manufacturer.