Hong Kong-listed Century Entertainment International Holdings Ltd said its British Virgin Islands subsidiary had signed a conditional agreement for "business rights" for eight game tables at its casino in Dara Sakor, Kokong province, Cambodia.
Century Entertainment changed its name from Amax International Holdings Ltd. in 2019. The company's chairman and CEO, Ng Man Sun, is a veteran of junket businesses in Macau.
The deal covers HK$58 million ($7.4 million), and will run for five years, according to a filing on Monday.
The casino belongs to a company called LongBay Entertainment Co., Ltd. The latter entered into a casino lease and operation agreement with a company called Lion King Entertainment Co., Ltd., 100% owned by Mr. Ng. The agreement allowed Lion King to lease the casino from May 1, 2021 to April 30, 2036.
Prior to that, in October 2019, Lion King and Ng signed an agreement with Century Entertainment to allocate the "right to operate and manage" four game table groups for a five-year period beginning March 31, 2020. The table was to be located at the Sunshine Bay Hotel Casino in Sihanoukville, which was then operated by Lion King and Ng.
The temporary closure of all casinos in Cambodia from April 1, 2020, affected the implementation of the original deal as part of a series of measures aimed at preventing the spread of COVID-19. In addition, Lion King and Ng eventually decided to relocate their gaming operations to Dara Sakor in 2020.
However, under the original contract, Lion King and Ng were required to pay a total of HK$58 million to Century Entertainment as "the result of the implementation of the revenue guarantee" under the 2020 contract.
Century Entertainment said in a filing on Monday that it had decided to implement a revenue guarantee under its original contract because it would not be able to operate the agreed game table for the two years ended March 31, 2022.
Under the currently announced deal, the price of HK$58 million will be settled by offsetting the amount owed by The Lion King and Mr. Ng. The tables will be assigned to a British Virgin Islands company called Victor Mind Global Limited, the wholly owned company of Century Entertainment.
The eight game tables to be allocated under the "new framework agreement" have been operating since November 2021, according to a filing on Monday. They are located on the casino's mass floor and are dedicated to baccarat.
It said total unaudited revenue and net revenue from November 2021 to March 2022 were approximately HK$10.4 million and HK$9.2 million, respectively, with net unaudited revenue of approximately HK$600,000 during the period. The report defined table net revenue as "total revenue excluding game revenue taxes and food and beverage charges."
BY: 파친코