Australia-listed Frontier Capital Group Ltd, which expects to complete this month the acquisition of Hotel Stotsenberg and Casablanca Casino (pictured), is likely to introduce live telephone betting at the casino property in the Clark Freeport Zone, in the Philippines, says a report from Alpha Securities Pty Ltd.
Frontier Capital announced in November it had decided to buy Stotsenberg Leisure and Hotel Corp – the holding firm for the Clark casino hotel – for a total consideration of US$26 million. Frontier Capital plans to introduce a new growth strategy for the Casablanca Casino this year.
“The expansion strategy is multi-faceted, entailing improvement to the gaming area, increasing the number of slot machines and gaming tables, targeting VIP patronage, the introduction of proxy betting to generate new business and improving the standard/frequency of facilities and activities in the Stotsenberg Hotel,” said on Tuesday the report by Australia-based financial consultancy services firm Alpha Securities.
Alpha Securities compiled the report at the request of Frontier Capital.
Frontier Capital has said it plans to increase the number of gaming tables at the Casablanca Casino to 47, while the number of slot machines would increase to 250.
“While citizens of Philippines are not allowed to participate in proxy betting, it is allowed out of Philippines,” said Alpha Securities, adding that such betting could be an attractive source of gaming revenue for Philippines casinos.
Live telephone betting – also known in the industry as proxy betting – would allow players to phone in their bets to a so-called proxy agent present at a table in the resort’s casino.
The report added: “At present, casino operators in Manila … provide the facility to their foreign players via joint venture with proxy betting operators. In Clark, only Fontana provides proxy betting, which is estimated to generate over 50 percent of its revenues from proxy betting and online gaming…”
Fontana Leisure Parks and Casino at Clark Special Economic Zone is part of the interests of Jimei Group, one of Macau’s largest consolidators of gaming promoters.
Frontier Capital’s shareholders will consider the acquisition of Stotsenberg Leisure and Hotel at a general meeting to be held on Thursday. The Australia-listed firm meanwhile on Tuesday filed a new prospectus with the Australian Securities Exchange saying it was removing the proposal to rename itself Fortune Crown Group Ltd.
