Donaco International Limited has signed a new agreement with Asian-based casino equipment and electronic gaming machine supplier RGB Ltd to replace 900 slot machines at its Star Vegas property in Cambodia.
The agreement will see RGB supply the latest machines from Aristocrat, Scientific Games, IGT and Konami with a value of over US$25 million.
Donaco currently operates 1,522 slot machines at Star Vegas of which 1,234 are supplied by distributors under revenue share deals and the remaining 288 machines are owned outright by Donaco.
RGB will also supply a sophisticated new slot machine and casino table game management system, replacing and upgrading existing systems at the property.
The agreement will require no upfront cost to Donaco for supply of the machines, which will operate under revenue share deals similar to current arrangements. However, Donaco said that the newer and higher quality slot machines are expected to generate increased revenue for the slot machine business at Star Vegas.
The Company expects the enhanced revenue to start flowing from December 2017, with the new slot machines and systems to be rolled out progressively over the following six months.
Donaco Managing Director Joey Lim said, “We are very pleased to sign a new agreement with RGB to maintain and enhance our existing relationship. We have identified a significant opportunity to replace legacy equipment and business arrangements at the Star Vegas with improved deal terms, as well as the latest gaming technology and machines for our customers. This latest deal represents another step forward in Donaco putting its management stamp on the business.”