Gaming services provider Success Dragon International Holdings Ltd. has been tapped to “supply, set up and manage” a minimum of 120 slot machines and multi-terminal machine units at two Macau casinos, the Grandview and the Casa Real.
The agreements are subject to regulatory approval and approval from casino operator SJM Holdings Ltd.
Casa Real on the Macau peninsula and Grandview on Taipa are both controlled by Hong Kong-listed Kingston Financial Group under SJM’s gaming rights. Ace Advantage’s deals were done with Today Holdings Ltd., identified in Success Dragon’s filing as the manager of both Grandview and Casa Real.
According to GGRAsia, the two agreements “mark a U-turn from Success Dragon’s stated plan to leave the Macau gaming services market, as announced in late April.” At the time, the firm said it would discontinue the business segment due its “less than satisfactory performance”. The decision followed the official expiry of the agreements it then had in place with Grandview and Casa Real. Both deals run until June 26, 2022, with an option for Ace Advantage to renew the term for another one year, subject to conditions.
Success Dragon stated that Ace Advantage would be entitled to a monthly “performance bonus” or fixed percentage of the net income of the manager from the slot operations for the month.
The company stated in its latest filing that it expects the financial performance of the gaming services segment to “improve under a better market condition along the continued increase in vaccination rates and the gradual recovery of the tourism industry in Macau.” The firm added it would also introduce measures to improve operation efficiency of its gaming services segment, and implement “appropriate cost control measures.”
