Former Macau junket investor Century Entertainment International Holdings Ltd says it has signed a new five-year deal with its own Chairman and CEO, Ng Man Sun, to operate eight gaming tables at a casino in Dara Sakor, Cambodia.
The casino in question, which is owned by Ng, was previously located in Sihanoukville but relocated to the China-backed investment zone during the COVID-19 pandemic.
According to details filed by Century Entertainment, formerly known as Amax International Holdings, on Monday, the total consideration due for use of the eight gaming tables over the next five years is HK$58 million. However, this amount will be offset after Ng and Victor Mind Global Limited, a wholly-owned subsidiary of the company, reached an agreement in relation to profit guarantees under a previous agreement signed in 2019.
Century Entertainment said it had decided to enforce that profit guarantee due to it being unable to operate its gaming tables under the previous agreement as a result of the pandemic and relocation of Ng’s casino, with the two parties settling on compensation of HK$58 million – offsetting the amount owed under the new agreement.
In announcing its new deal, Century Entertainment revealed its eight gaming tables will be mass market tables offering mainly baccarat, with the company entitled to 100% of all winnings and responsible for 100% of all losses.
The casino itself comprises 7,000 square meters of gaming area, 20 mass gaming tables, 25 VIP tables, 50 electronic gaming machines and a Chinese restaurant.
Explaining its reasons for signing the new deal, Century Entertainment said it “sees attractive potential in the gaming market in Dara Sakor, Koh Kong Province, which is one of the most rapidly developing districts in Cambodia and is a well-known tourism destination in Southeast Asia.
“The New Casino at Dara Sakor is planned to be surrounded by luxury hotel resorts and a golf course. In addition, the new international airport close to the New Casino could also help attract visitors.
“Based on the preliminary valuation prepared by an Independent Valuer, the market value of the New Gaming Table Business Rights was approximately HK$63.6 million (US$8.1 million) as at 30 September 2022. As such, the Consideration represents a discount to the valuation of the New Gaming Table Business Rights of approximately 8.8%.
“In addition, the Consideration shall be settled by offsetting the net amount due from Mr. Ng and Lion King to the Group, which will not incur additional cash outflow to the Group.”