Paris Peace Accords 23 Oct. 1991

Monday, February 17, 2014

Gaming profits spur new casino, VIP push

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. 

Public floor gaming tables at its NagaWorld casino in Phnom Penh generated more than $89.8 million for the company, while electronic gaming machines generated $101 million.

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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