Former Macau junket investor Rich Goldman Holdings Ltd says it has launched a new Philippines junket business at Solaire Resort & Casino in Manila after entering into a profit share agreement with the company’s joint venture partner.
In a Hong Kong Stock Exchange announcement, Rich Goldman said that signing of the profit share agreement on 30 December completed one of the conditions precedent under a previous agreement signed in April 2020 to form the joint venture with the purpose of providing customers to a new VIP room at Solaire.
The joint venture, owned 51% by Rich Goldman subsidiary Prime Jade Enterprises Ltd and 49% by an independent third party called Great Happy Century Ltd, saw the two subscribe for 510 shares and 490 shares, in the amount of HK$510,000 and HK$490,000, respectively. Great Happy is wholly-owned by by Mr Tam Ka Wo, a former Macau partner of Rich Goldman who will operate the VIP room in question.
Originally scheduled to begin operations within three months of the initial April 2020 agreement, the launch of the new VIP room was delayed as a result of COVID-19. However, Rich Goldman said that with the profit sharing agreement now in place, the new joint venture firm would start introducing customers to the live gaming tables in the Solaire VIP room as of 1 January 2021.
In return, the joint venture will receive 1% of the rolling turnover generated from the live gaming tables by Mr Tam in the associated VIP room each calendar month.
Rich Goldman Holdings revealed in March 2020 that it had parted ways with its sole remaining junket operator in Macau, Hoi Long Sociedade Unipessoal Limitada, which had until then operated eight VIP tables at SJM’s Grand Lisboa.
The company had previously worked with two other junket partners but lost both of those in 2017 when Venetian Macao Limited (VML) terminated promotion agreements with Hao Cai Sociedade Unipessoal Ltd to operate 14 VIP tables at The Venetian Macao and Hou Wan Entertainment Ltd to operate 10 VIP tables at Sands Macao.
Rich Goldman said in April that it had been “actively exploring possibilities to expand its gaming business and identifying new junket operators for its gaming business,” and that, “The Directors are of the view that the formation of the joint venture company in the Philippines with Great Happy represents a strategic move for the Group to diversify its gaming business into the Philippines.”
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