Hong Kong's Success Dragon signs two VN deals

Thursday, Dec 17, 2015 15:39

A person plays electronic gaming machines. The machines will be developed in Viet Nam under the Hong Kong's Success Dragon signed agreements with two five – star hotels in Viet Nam. — Photo ggrasia.com.

HA NOI (Biz Hub) — Hong Kong casino operator Success Dragon International Holdings Ltd has signed two agreements on managing electronic gaming machines at gaming clubs in two five-star hotels in Viet Nam.

The company, known till last week as CY Foundation Group Ltd, announced this on December 11.

One agreement, made on October 28, is with Tien Phuoc and 990 Co Ltd, which owns the five-star Le Meridien Hotel in Ho Chi Minh City.

Under the deal, Success Dragon will be responsible for investment, management and operation of the electronic gaming machine club at the venue for "at least 10 years," the firm said in a filing made to the Hong Kong Stock Exchange on Friday.

The details of the business co-operation contract were not disclosed, a representative of Tien Phuoc and 990 Co Ltd told Biz Hub.

The second deal, made on December 10, is with the owner of One Opera Hotel, a five-star hotel and commercial complex in the central Da Nang City.

Talking to Biz Hub on December 16, both firms in Viet Nam confirmed the report. Tien Phuoc has been offering electronic gaming machines, while One Opera Hotel has applied for an investment licence to launch the service next year.

Under the agreement, Success Dragon has been appointed as exclusive manager of games with prizes at the electronic gaming machine club at One Opera Hotel for an initial term of 10 years, with an option to extend the agreement for a second 10-year term.

Under the One Opera Hotel deal, Success Dragon will be entitled to a monthly management fee of four per cent of the total gross monthly revenue at the venue, after deducting for player prizes and excise tax, according to the filing.

The document said although "Viet Nam laws presently only allow foreigners and Vietnamese residing in overseas countries holding foreign passports to make wagers in casinos and electronic gaming machine clubs," the firm had targeted Viet Nam for the deals because "it is expected that there will be more foreign visitors to Viet Nam, leading to a potential growth of the electronic gaming industry."

The filing said the group currently manages "about 800 operative gaming machine units in Macau." The document said Success Dragon was looking to expand internationally its outsourced electronic gaming machine management business to broaden its revenue sources. Viet Nam was the first country selected for such an expansion.

Success Dragon reported a loss of US$18.1 million for the six months that ended on September 30. — VNS

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