Cambodia – Amax to operate VIP room at Poipet casinoBy Phil - 1 December 2017
Amax International will operate a VIP room at Genting Crown Casino in Poipet having signed a three year deal with Cambodia’s Crown Resorts, which isn’t affiliated to either Genting or Crown Resorts.
The junket group will operate 13 VIP tables for which it will pay Crown Resorts Co a monthly fee of RMB500,000 (US$75,650) for the first year, RMB550,000 for the second year rising to RMB600,000 for the third year.
Amax stated: “Given the support of the Cambodian government to the local hotel and entertainment industry and the booming tourism year on year in Cambodia, the Board has spotted a valuable opportunity to tap into the entertainment businesses. Cambodia is still one of the smallest economies within ASEAN and remains one of the less developed countries in Asia when competitors and other investors are still unaware of this golden gem. The local casino industry in Cambodia has been growing in recent years. In the first nine months of 2015, 75 casinos, with 10 new establishments licensed in the third quarter alone, were responsible for US$29m in government revenue and US$2bn in income for casino owners, most of which are foreign investment companies.”
Amax added that it would outsource the operation of the VIP room to the group who previously ran a room at its Greek Mythology casino in Macau between 2006 and 2011 and currently runs junket operations at Marina Bay Sands in Singapore and Imperial Pacific Resort in Saipan.
Amax said it would be responsible for ‘formulating strategies; monitoring the human resources and administration functions; promoting the Target VIP Room; overseeing the entire day-to-day operations of the Target VIP Room as well as liaising with the operator’s junkets network to bring players to the Target VIP Room.’
The Group holds 24.8 per cent equity interests in Greek Mythology in Macau, which operates and manages Greek Mythology casino at Beijing Imperial Palace Hotel (formerly known as New Century Hotel) in Macau.
Amax recorded revenues of HK$10.53m for the last year increasing 156.3 per cent. The increase in revenue was mainly attributable to the revenue derived from the gaming operation in Vanuatu which has continued to achieve progress after its operation commenced in July 2016 and for 77.2 per cent of Amax’s total revenues.
“Together with the company’s existing gaming business in Vanuatu, the Board believes that the company is gradually building a broad network in the gaming and entertainment business beyond Macau,” Amax stated.