The Chairman and Managing Director of Macau’s Paradise Entertainment Ltd said Tuesday that the company’s satellite casino, Casino Kam Pek Paradise, could be run under a management agreement but added that the related management fee paid should be negotiated with the concessionaire.
In response to comments from Macau Chief Executive Sam Hou Fai earlier this week that the future of the city’s 11 satellite casinos was the responsibility of concessionaires, Paradise’s Jay Chun confirmed that he would like the company to continue to operate its peninsula casino even after traditional revenue share agreements become outlawed at the end of 2025.
“We have been in communication with the concessionaire (SJM) but specific terms have not yet been discussed,” Chun explained during a media event at a new factory opened by the company’s supplier arm, LT Game.
“We also produce gaming machines, so if we have a casino to test them in, it will be quicker for the gaming machines to be launched [into the market].”
Asked if Paradise could run casino operations at Kam Pek under a management deal, Chim added, “Theoretically, yes, but the law is very clear that it is not possible to share the GGR and how to determine the management fee has to be discussed with the concessionaire.”
Chun was also asked to provide some guidance on what such a management fee might look like, stating, “We have to listen to the government and concessionaire. It would be helpful if discussions could be held more quickly. Whether we can continue to operate or not, we all need some time to think about it.
“We hope to be able to ensure at least a basic management fee to cover all expenses, especially staff remuneration.”
Casino Kam Pek opened in 2007 as a joint venture with SJM and has been a mainstay on the Macau peninsula for almost 20 years, but like all 11 satellites will no longer be allowed to engage in revenue share agreements post-2025.
Said Chun, “Many of our staff have been with us for many years and we hope that they will stay and continue to work for us. The company employs about 300 local staff and 400 expatriates.”
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