Entertainment Gaming Asia Announces Agreement to Increase Its Revenue Sharing Interest in Promising Slot Venue in the Philipp...
21 Outubro 2011 - 11:00AM
Business Wire
Entertainment Gaming Asia Inc. (NYSE Amex: EGT) (“Entertainment
Gaming Asia” or “the Company”), a leading provider of electronic
gaming machines on a participation basis to the Pan-Asian gaming
industry, today announced it entered into an agreement (the
“Agreement”) to increase its revenue sharing rights in San Pedro
VIP Club, one of the Company’s best performing venues in its
Philippine gaming participation operations. This Agreement, which
furthers the Company’s strategy to improve returns and focus its
assets on the highest-potential venues in the market, increases its
revenue share of this venue’s net win to 35% and its control over
the promotion and marketing strategies.
San Pedro VIP Club, located in the popular suburban district of
San Pedro, Laguna, approximately twenty minutes from Manila, is one
of the Company’s most promising venues under participation contract
in the Philippines. The Company currently has approximately 180
electronic gaming machine seats in operation at San Pedro VIP Club
with average daily net win per machine of approximately $70-80.
As in all other cases of the Company’s existing participation
business in the Philippines, San Pedro VIP Club is operated by the
government operator, Philippine Amusement and Gaming Corporation
(PAGCOR), which entered into a machine lease contract with a
company (the “Proponent”) which possesses the premises of the club
(the “PAGCOR Contract”). The Proponent in turn entered into an
agreement with the Company to lease electronic gaming machines to
the venue (the “Agreement of Lease”). Pursuant to the terms of the
PAGCOR Contract and the Agreement of Lease, the net win after
gaming tax of the machines at San Pedro VIP Club was to be shared
amongst PAGCOR, the Proponent, and the Company in the ratio of 65%,
18%, and 17%, respectively.
Under the terms of the Agreement announced today, Entertainment
Gaming Asia will take over the role of the Proponent and will work
directly with PAGCOR. The Company’s revenue share will increase
from 17% to 35% and PAGCOR will maintain its 65% share. The Company
will also incur certain of the venue’s operating expenses, which
will be recorded in its cost of gaming operations. These operating
expenses mainly comprise costs related to property rental,
marketing, and equipment maintenance. The closing of the Agreement
will be subject to the fulfillment of various conditions, which
include PAGCOR’s consent and agreement to extend the PAGCOR
Contract with the Company until mid 2016. Upon closing, the
Agreement will be retroactively effective as of August 1, 2011.
Total consideration payable by the Company under the Agreement
is approximately $1.3 million, which will be funded by the
Company's internal cash resources.
Clarence Chung, Chairman and Chief Executive Officer of
Entertainment Gaming Asia, commented, “We are pleased to have the
opportunity to work directly with PAGCOR and further our strategy
to improve the growth potential of our Philippine operations by
focusing our resources on our most promising venues in this market.
San Pedro VIP Club is one of our best performing venues in our
Philippine participation operations. With greater flexibility and
control over marketing and promotion, we intend to implement some
of the successful initiatives that focus on customer service and
loyalty programs employed in our other operations to build on San
Pedro VIP Club’s solid performance.
“We believe this investment strengthens our overall position in
the Philippines. Further, it provides the potential to maximize
returns from our gaming operations in this market, which better
positions us to pursue gaming expansion opportunities including our
casino development plans in the Indo-China region.”
About Entertainment Gaming Asia Inc.
Entertainment Gaming Asia Inc. (NYSE Amex: EGT) is a leading
provider of electronic gaming machines on a participation basis to
the Pan-Asian gaming industry. The Company secures long-term
contracts to provide electronic gaming machines and related systems
to premier hotels and other well-located gaming venues in Asia. The
Company retains ownership of the gaming machines and systems and
receives recurring daily or monthly fees based on an agreed upon
percentage of the net gaming win per machine and provides on-site
maintenance. Entertainment Gaming Asia Inc. is also engaged in the
development of casinos in Indo China where it intends to own and
operate casino resorts under the “Dreamworld” brand. For more
information please visit www.EGT-Group.com.
Forward Looking Statements
This press release contains forward-looking statements
concerning Entertainment Gaming Asia within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Those
forward-looking statements include statements regarding
expectations for the expansion of the Company’s participation
business model, the increase in the Company’s share of the net win
for the San Pedro venue, the return on investment in the San Pedro
venue, the growth of the gaming industry in the Philippines, growth
of the gaming industry in the Indo-China region and the Company’s
ability to secure new casino projects and fund those projects. Such
statements are subject to certain risks and uncertainties, and
actual circumstances, events or results may differ materially from
those projected in such forward-looking statements. Factors that
could cause or contribute to differences include, but are not
limited to, risks related to Entertainment Gaming Asia’s ability to
generate net win from the gaming machines placed at the San Pedro
venue at historical or increased levels, minimize its share of the
operating expenses incurred at the San Pedro venue, identify and
successfully develop additional casino projects in the Indo-China
region, acquire additional capital as and when needed and those
other risks set forth in Entertainment Gaming Asia’s annual report
on Form 10-K for the year ended December 31, 2010 filed with the
SEC on March 30, 2011 and subsequently filed quarterly reports on
Form 10-Q. Entertainment Gaming Asia cautions readers not to place
undue reliance on any forward-looking statements. Entertainment
Gaming Asia does not undertake, and specifically disclaims any
obligation to update or revise such statements to reflect new
circumstances or unanticipated events as they occur.
Entertaining Gaming Asia Incorporated (AMEX:EGT)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Entertaining Gaming Asia Incorporated (AMEX:EGT)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024