Hong Kong-listed Century Entertainment International Holdings has finally commenced operations of a new VIP gaming table business in Cambodia’s Dara Sakor, more than four years after ceasing operations in Sihanoukville due to the COVID-19 pandemic.
The company said in its results release for the six months to 30 September 2024 that it had commenced the operation of seven VIP gaming tables at the casino in question on 1 October – the day after the relevant resolution was passed at a Special General Meeting.
Century Entertainment had signed the deal with the casino’s owner in May by which it will operate the tables for an initial three-year term. The company will pay the owner, LongBay Entertainment, US$35,000 a month for which it will be entitled to 100% of winnings and responsible for 100% of house losses as well as paying relevant staff costs.
In Friday’s filing, Century Entertainment said it was currently focusing on intensive staff training and operational gearing to ensure a smooth and efficient operation.
“The Group anticipates that the VIP rooms operation will stabilize in the upcoming months and will be able to contribute significantly to the Group’s overall performance in 2025,” it said.
The long-awaited opening of the VIP room is also behind the company’s confidence in its financial position given questions over its ability to continue as a going concern, despite registering no revenue in the six months to 30 September and recording a HK$11.4 million loss, with net liabilities of HK$91.2 million.
Century Entertainment has received financial support from its Chairman and CEO, Ng Man Sun, who has promised not to call on repayments in the short-term, but the company said the commencement of casino operations represents a key milestone moving forward.
“The casino is strategically located in Dara Sakor, a rapidly growing district in Cambodia and a key tourism hub in Southeast Asia,” it said. “With the new airport nearing completion and the development of various leisure amenities such as a golf course and shopping mall underway, it is expected that there will be a surge in tourist traffic in the region. The Board is confident that its gaming business will generate consistent revenue streams from its higher-margin VIP rooms, further strengthening the Group’s financial performance and reinforcing its market position.”
Century Entertainment, formerly known as Amax International Holdings, had previously operated gaming tables at a casino controlled by Ng in Sihanoukville, but announced in October 2020 plans to relocate to Dara Sakor after Ng received a “more attractive offer”.
However, despite signing a new five-year deal in February 2023, the company never officially began its new table games business due to the impact of the COVID-19 pandemic and delays in completing its implementation agreement.
The Dara Sakor casino covers a gross floor area of 10,500 square meters and features a total of 40 mass gaming tables, 55 VIP tables and 80 slot machines as well as a Chinese restaurant, spa and night club.
