EGT to pursue larger casino projects in Asia: chairman
Entertainment Gaming Asia Inc (EGT), which operates slot machines on a participation basis and also supplies gaming chips and plaques to casinos in Asia, plans to pursue larger projects in the Asian market, said chairman and chief executive Clarence Chung Yuk Man.
“We intend to pursue projects in Indochina and other growing gaming markets in Asia that will enable us to expand our market presence and increase brand equity in our Dreamworld name,” Mr Chung said in a letter to shareholders filed with the U.S. Securities and Exchange Commission.
“We will endeavour to pursue projects that are relatively larger in size and investment than our previous Dreamworld projects and in more established markets with higher levels of existing natural player traffic,” he added.
EGT currently operates one property in northwestern Cambodia in the province of Banteay Meanchey, called Dreamworld Club Poipet (pictured).
Nasdaq-listed EGT last week said it had successfully completed a share sale, raising gross proceeds of about US$15 million. “As a result of the offering, we have increased our cash balance to approximately US$20 million and have become an indirect majority-owned subsidiary of a respected leader in Asian gaming,” said Mr Chung.
The company became a subsidiary of Melco International Development Ltd, which increased its stake in EGT to 65 percent following the deal.
Melco International, chaired by Lawrence Ho Yau Lung, is one of the two controlling shareholders of casino operator Melco Crown Entertainment Ltd.
In this week’s letter to shareholders, Mr Chung also said the company plans to pursue additional opportunities in Indochina to place its slot machines “in prime locations on the gaming floors of major casinos and/or hotels in our target markets”.
He added that the firm is committed to returning to positive earnings and expanding its business operations next year.
“I believe that with our existing foothold in our growing markets, our improved financial flexibility and a highly-regarded indirect majority owner, we are better positioned for leadership in the years ahead,” Mr Chung said.
Last month, EGT reported a net loss of US$261,000 for the three months ended September 30.
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