Hong Kong junket investment firm Rich Goldman Holdings announced a three-month delay to launch of their new VIP room at Solaire Resort & Casino in the Philippines. The firm remains hopeful of the deal being completed, and have extended the deadline to set up a new VIP room under a joint venture agreement.
The original terms allowed for the joint venture to be terminated if the conditions were not met by July 26. The COVID-19 outbreak in the Philippines, and subsequent shutdown of the gaming industry, have made it difficult for Rich Goldman to get the deal across the line.
Both parties have amicably renegotiated the terms, recognising the extreme conditions and have agreed to extend the deadline date to October 26.
In April, the company had filed that it would form a shared venture to introduce a VIP room with video streaming and live gaming tables at Solaire, operated by Bloomberry Resorts.
Bloomberry has struggled during the pandemic, with a decrease in earnings by the end of March, down 13% over the same period from 12 months ago. The Solaire closure in March resulted in a 16% year-on-year profit decrease.
On their website, Rich Goldman highlighted the COVID pandemic conditions as the reason behind the delay:
“As a result of the Covid-19 outbreak in the Philippines and the continuing lockdown measures, additional time is required for the fulfilment of certain conditions precedent under the joint-venture agreement. Accordingly, the parties to the joint-venture agreement agreed in writing on 21 July 2020 to extend to long stop date to 26 October 2020 (or such other date as the parties may further agree in writing).”
Solaire continues to show caution to the lifting of restrictions while pressing ahead with the JV. Solaire CEO Enrique K. Razon Jr released a statement on the company website reassuring that all was being done to return operations to normal:
“Even as the Enhanced Community Quarantine (ECQ) covering Metro Manila is extended into mid-May, our team continues to prepare for our eventual reopening. We anticipate a slow restart of operations as we gauge the market’s response after the ECQ is lifted. We are doing this to ensure that all the employees we allow to return to work are healthy and in the best shape to provide our outstanding signature service.”
