Cambodia – Naga 3 could bring 800 extra tables to Phnom PenhBy Phil - 4 April 2019
Despite its revenues for the first quarter of 2019 being up another 32 per cent, to add to group record revenues in 2018 of US$1.43bn, an increase of 54.9 per cent, NagaCorp is going all in on an expansion that aims to make it ‘the largest comprehensive, multi-entertainment riverine integrated resort’ in the world.
The Cambodian operator is looking to bring an extra 800 gaming tables, mass and VIP, to the only casino in the capital of Phnom Penh-**, 2,500 EGMs, in addition to the already planned 4,720 hotel bays and 12-storey multi-entertainment podium (including casinos, restaurant and KTV, an indoor Hi Tech Digital theme park, spa and MICE facilities).
NagaWorld has no restriction as to supply of gaming tables and gaming machines.
It said: “The vision of the Group is to build the largest comprehensive, multi-entertainment riverine integrated resort in the world and position the group as another gaming powerhouse in Asia Pacific, further securing its firm footing on the competitiveness of the group. The Naga3 Project will showcase a lifestyle product consisting of gaming and non-gaming spaces and comprise amenities and facilities which are not available at Naga1 and Naga2, notably hi-tech virtual reality interactive indoor theme parks, more shopping and MICE facilities and family recreational areas to impart a more satisfying, penetrating and complete visitation experience.”
Having considered the uniqueness of a casino monopoly in the heart of a capital city and after having operated successfully for the past 24 years amidst a region with political stability, tourism and economic growth, the group’s vision of building the Naga 3 Project, a complex with 4,720 hotel bays which only satisfy 4.7 per cent of the total estimated additional hotel rooms of 100,000 as required by the Ministry of Tourism of Cambodia by 2028 paves the way for more success for the group.
NagaCorp added: “The company believes that the launch of Naga 3 is not only timely but certainly, also the answer to solve future capacity problems and the surer way to continue the journey of earnings growth, especially after recent rapid successful ramping up of Naga 2.
The gaming industry in Asia and Cambodia is expected to continue experiencing increasing growth where gross gaming revenue in Asia reached US$44.6bn in 2017 and is further expected to grow at 16% compound annual growth rate (CAGR) to US$59.1bn by 2020. Growth in Cambodia’s gaming industry is expected to accelerate at a faster pace of 36 per cent CAGR from a gross gaming revenue of US$0.9bn in 2017 to US$2.3bn by 2020.
Las Vegas architect Steelman Partneers has designed Naga 3 with the intention and purpose that upon completion, NagaWorld Complex shall suitably be referred to the ‘biggest Riverine Integrated Resort in the World.’ Naga 1 covers a gross floor area of 113,307 square meters, Naga 2 covers 108,764 square meters, whilst Naga 3 will dwarf them both at 544,801 square meters.’
Naga 3 is expected to comprise of two 66-storey hotels, two 53-storey hotels, one 55-storey condotel, one three-level basement and one 12-level multi-entertainment podium.
The bold vision was announced as NagaCorp revealed its financial results for the three months to March 31 2019. GGR was up 32 per cent year-on-year to US$321.2m. VIP rolling chip was up 45 per cent, mass table increased by 31 per cent whilst EGM increased by 29 per cent.
The group said that junkets had greatly helped drive revenues in the quarter. SunCity Group moved its operation in Naga 2 to a dedicated larger space that accommodates more VIP tables and other supportive entertainment related facilities. Tak Chun, one of the largest Macau-based operators has set up a fixed base operation and officially commenced its business operations in NagaWorld. Guangdong Group, another major Macau-based operator, has commenced bringing in VIP players to NagaWordl.
“Overall both South East Asian and Macau-based operators have contributed encouraging VIP rollings during the current period,” it said.