CASINO

Silver Heritage assigns Laos electronic gaming machines agreements

TAGs: Laos, Leonard Postrado, Nepal, Silver Heritage

To reduce overhead and variable costs, Australia-listed gaming operator Silver Heritage Group assigned its revenue sharing agreements to manage electronic gaming machines at a Laos casino to a third party. Silver Heritage assigns Laos electronic gaming machines agreementsIn a filing on Monday, Silver Heritage has tapped Pan Asia Leaders to manage the electronic gaming machines at Dansavanh Nam Ngum Resort and Casino in Laos for a consideration of US$500,000. Silver Heritage pointed out that the move will “significantly reduce overhead and variable costs of its Laos-based operations.” It added that the agreement is part of the casino operator’s strategy “to focus its resources on the Tiger Palace Resort Bhairahawa development and its casino operations in Nepal and in Vietnam.” Under the agreement, Pan Asia Leaders will pay the group a fixed monthly fee for the lease of some electronic gaming machines owned or managed by the group. “The group believes the assignments optimize their current agreements” at Dansavanh Nam Ngum Resort and Casino, said Silver Heritage. Meanwhile, Silver Heritage announced that it is set to open the RS4 billion (US$37.56 million) Tiger Palace Resort in Bhairahawa, Nepal by the first quarter of 2017. Kathmandu Post reported that the five-star casino resort has already been completed and is expected start operations in the January to March period. “Obviously, the southern neighbor will be our key market,” Rajendra Bajgai, Nepal representative of Silver Heritage, said. “We will also be conducting charter flights from Delhi and other Indian cities to bring in high-end casino players.” Tiger Palace Resort is spread over 4 acres and features two villas, a gym, spa, swimming pool, restaurants and meeting and banquet facilities suitable for weddings. The resort will provide access to customers to a 2,471 square-metre casino floor. In a recent interview, Tim Shepherd of Silver Heritage believes that Nepal is one of the alternative countries where casino operators may find growth, given its geographical location and the government’s casino-friendly policies. Shepherd pointed out that Nepal has potential for casino revenue growth since it is strategically located beside India, which has an estimated population of 1.3 billion people. He added that Nepal has been a license free country for over 50 years. “We like Nepal. Nepal has been a license free section of over 50 years. We have casino there in a length of time in Kathmandu. With India now as a tourist destination. By 2030, India have a greater middle class consumption than China and four times that of the US,” Shepherd told CalvinAyre.com. “So, with very, very little supply at the moment, we think Nepal is the spot. And we are investing in a resort there on the Indian border which is going to have 400 rooms, 50 tables, 250 slots, the first of its kinda anywhere along that 1,000 km border in India.”

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