Hong Kong-listed Century Entertainment International Holdings Ltd says one of its subsidiaries has an agreement to lease and operate two VIP rooms in a casino at Dara Sakor, Koh Kong province, in Cambodia.
The two rooms have a combined gross floor area of about 650 square metres (6,997 sq feet), featuring seven gaming tables, according to a Friday filing by Century Entertainment.
The company’s subsidiary Wisdom Ocean Group Ltd will pay a monthly rent of US$35,000 for the lease of the VIP rooms. The contract will be for three years, effective from the date of the deal being approved at a special general meeting of Century Entertainment.
Century Entertainment will be entitled to 100 percent of winnings and be responsible for the entire house losses, and “shall bear the relevant staff costs and taxes associated with such gaming business,” stated the document.
The casino belongs to an entity called LongBay Entertainment Co. Ltd, and is located at the LongBay Century Hotel (pictured).
The newly-announced agreement follows the termination of a previous deal involving Century Entertainment’s chairman and chief executive Ng Man Sun, and a company called Lion King Entertainment Co Ltd, wholly-owned by Mr Ng.
Century Entertainment said in Friday’s filing that it terminated the original deal because it was “unable to obtain the full underlying books and records for the preparation of the profit and loss statement on the identifiable net income stream” in relation to the gaming table business rights.
“In order to resume the group’s gaming business, the company started to negotiate with LongBay Entertainment to directly lease the VIP rooms from LongBay Entertainment for operation of gaming business,” added the Hong Kong-listed firm.
Century Entertainment said it “plans to operate baccarat on all the gaming tables in the VIP rooms”.
“The board believes that the entering into of the casino agreement would … generate stable revenue for the group and therefore improve its financial performance and financial position,” added the company.
