Gaming profits spur new casino, VIP push
NagaCorp, Cambodia’s largest casino operator, reported profits
of more than $140 million in 2013, according to a February 12 statement
that also detailed plans for the rest of this year.
Total revenue for the casino firm rose 24 per cent from 2012 to $344 million, according to the statement.
NagaCorp’s VIP junket program brought in more than $133.1 million
after being launched in March last year. The VIP market grew a total of
40.3 per cent from 2012.
The casino pays out commissions or incentives to junket operators who manage to bring in high-roller players.
Citing an increase in tourist arrivals and scheduled weekly flights
to the Kingdom in 2013, NagaCorp said it hopes to boost visitation,
especially from China. The company also aims to establish chartered
flights between the gambling hub in Macau and Phnom Penh in an effort to
bolster the VIP market.
“To cope with the expected increase in VIP headcount, the Group is
completing level three of the hotel block and the rooftop of the pool
wing to create additional VIP junket gaming areas that will potentially
add up to 63 VIP gaming tables, which is targeted for completion in
2014,” the company statement said about its NagaWorld operation.
The earnings statement comes as the firm ramps up plans to open a
second hotel and casino in Cambodia’s capital, and a third in
Vladivostok, Russia.
Naga2, which represents a $369 million investment and is currently
under construction a mere 200 metres from the existing NagaWorld, is
scheduled to open in 2016. It will house 1,000 hotel rooms, 50 VIP
suites, up to 300 gaming tables and 500 electronic gaming machines,
according to the company’s statement.
In Russia, the firm is establishing subsidiary companies before
applying for a casino and construction permit, which they anticipate
could take up to two years to achieve.
The Vladivostok casino and hotel is estimated to cost $350 million, and aims to be completed by 2018.
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