Company has online and land-based potential
Plastics manufacturer Luster Industries Bhd. has announced plans to go into the lottery business in Cambodia. It’s the first step of the company’s long-range strategy to develop and own casinos and hotels in that country.
Luster Managing Director Lim See Chea told StarBizWeek the company is negotiating with several unnamed casino operators in the region and hopes to reach a partnership deal in the weeks to come.
In May, Luster bought a 60 percent stake in Pan Cambodian Lottery Corp Ltd. for US$4.2 million (RM14.96 million) from Opal Deluxe Ltd., a subsidiary of Fragrant Prosperity, a gaming, tourism and property development group listed on London’s GXG Market. PCLC is a licensed digit number operator in Cambodia, Star announced. The vendor guaranteed profits of US$3 million over three years.
Luster Deputy Managing Director Liang Wooi Gee said the profit guarantee from the digit game “is about 43 percent of the purchase consideration, which work out to about 14 percent per year.”
According to Lim, PCLC not only owns the lottery license, but is also approved to operate a casino and online casino. He said Luster will become a major player in the gaming and leisure industry, and also hopes to operate an integrated resort in Cambodia on the borders of Thailand and Vietnam.
He said the company chose to diversify through gaming because it’s a strong growth industry in Cambodia. “Cambodia is growing rapidly at the rate of around 7 percent in the last three years and has political stability, contrary to perception that it is under develop and not safe for foreigners to visit,” he said.
Adding to the jurisdiction’s appeal, said Lim, the kingdom has a “high punters population” and a low tax rate. Lotteries pay a 10 percent sales tax and no corporate gain tax. Currently the gaming industry in Cambodia contributes some US$20mil (RM71.22mil) to its government.
