The famous company listed in Hong Kong, Century Entertainment International Holdings Ltd changes the way things are done in Cambodia. The company terminated the contracts it had with the Dara Sakor casino in Koh Kong Province, but at the same time, it hopes it will continue to build its presence in the country.
The reasons behind the termination:
The reason for this termination of the contract for table games lies in the fact that the subsidiaries didn’t comply with the conditions of the agreements by December 31, 2023. The casino was owned by LongBay Entertainment Co. Ltd., and the company signed a lease and operating deal with Century Entertainment’s Chairman Ng Man Sun’s company, Lion King Entertainment Co Ltd.
According to the terms of the deal, Lion King was able to lease the casino from May 1, 2021, to April 30, 2036. The casino was leased for the amount of HKD 58 million (US$7.4 million) for the five years of operation period.
But things changed recently. According to Century Entertainment, the analysis of profit and loss in the previous three financial years required more detailed analysis when it comes to the net income stream. The auditors and reporting accountants have to review the New Gaming Table Business Rights and make sure that all information complies with the records and books.
It is expected that Lion King will provide the underlying books and records for both expenses and income. These figures include net gaming wins, gaming tax, food and beverage charges, and other costs. However, according to the Asia Gaming Brief, ‘certain operating expenses, including staff cost and room and food charges were provided by Lion King based on estimation and no cost allocation was prepared.’
Fair terms and plans for the future:
According to the Board, the Termination Agreement is fair and respects the interests of both the Company and Shareholders. The VMG, Lion King, and Ng Man Sun will be released of any duties and obligations related to the business, but the Group’s operations and financial position remain intact. There will be neither deposits nor any other kind of compensation between the included parties.
But that’s not the end for all Century Entertainment’s operations in Cambodia. The company is currently negotiating the terms of the possible casino lease and operating agreement with LongBay Entertainment Co. Ltd. The company hopes to operate the VIP room located in Long Bay, Dara Sakor, Cambodia, and to continue with various gaming activities under the operating license granted by LongBay Entertainment.