Operator News
Cambodia – NagaCorp signs ten year extension taking exclusivity to 2045
By Phil - 20 November 2019
NagaCorp has signed a ten-year extension of its exclusivity deal to operate casinos in the Cambodian capital of Phnom Penh.
It has signed the Second Addendum Agreement between The Royal Government of Cambodia and Ariston, a company incorporated in Malaysia which is a wholly-owned subsidiary of NagaCorp. Under the terms of the Agreement, NagaCorp is licensed to operate casinos in Cambodia for a period of 70 years, expiring in 2065. During this 70-year period, the group has exclusive rights up to 2035, which has now been extended for an additional 10 years effective from January 1 2036 until December 31 2045, to operate casinos in Phnom Penh, Cambodia within a 200-kilometre radius of Phnom Penh, except at the Cambodia-Vietnam border areas of Bokor, Kirirom Mountains and Sihanoukville.
NagaCorp stated: “The company believes that the signing of the agreement and exclusivity extension till 2045 may be viewed as a long-term tourism infrastructure project which may generate recurrent revenue to the company The vision of the group is to build the largest comprehensive, multi-entertainment riverine integrated resort in the world and to position the group as another gaming powerhouse in Asia Pacific, further securing its firm footing on the competitiveness of the Group. NagaCorp’s recent publicly announced commitment to invest up to approximately US$3.5bn to construct and develop the Naga 3 integrated entertainment complex and the resultant economic value of thousands of jobs creation and incremental increase in tourist’s visitation generated during and at the end of the Naga 3 Project.”
For the year ended December 31 2018, NagaCorp recorded gross gaming revenue of US$1.4bn, EBITDA of US$512m and net profit of US$391m.
