NagaCorp, the Cambodian casino operator has added another foundation layer to its already solid monopoly in Phnom Penh. The company is one of the major Hong-Kong listed casinos.
The gaming operator announced that it had struck a deal with the Cambodian government to continue its casino monopoly in the nation’s capital by 10 more years. The extension entails a 200 km radius from Phnom Penh according to an article by CalvinAyre.com.
NagaCorp’s original deal with the government was a gaming license for the next seventy years meaning it would reach its expiration date in 2065. Through the deal, NagaCorp is assured of a casino monopoly in the national capital and its environs with some geographical exceptions.
The deal, however, had an exception to areas such as Sihanoukville and Vietnam’s border with the country. This deal was valid till 1st January 2036 but with the 10-year extension, the monopoly will extend until December 31st 2045.
On its part, NagaCorp has to pay $10 million to the government when signing the new deal. A further annual payment of $3 million will also be paid by the operator as part of the deal.
NagaCorp also commented that the government was aware of its ambitious $3.5 billion NagaWorld resort expansion plans. Some critics are of the opinion that the plan is overly ambitious given the huge amount that the operator is planning to invest in the project.
The casino’s shareholders approved the NagaCorp plans back in August. 98% of the minority shareholders who took part in the motion were of the opinion that the plans should push through.
The plans entail the construction of a number of tall towers which will have 4720 combined number of hotel rooms. With the plan, gaming tables and slots will get a serious boost.
Moreover, the plan has included non-gaming amenities as well. These non-gaming amenities that the resort will boast off include; shopping malls, entertainment areas, dining areas among others.
The project which was dubbed Naga 3 is set to start in April next year after the shareholders gave their consent. The expansion of the NagaWorld Cambodian Integrated Resort is expected to attract large crowds and increase the overall revenue for the company.
Apart from being a monopoly in the Cambodian capital, NagaCorp is one of the countable Asia-Pacific casino operators that have stayed away from controversies. Having managed to do this, the monopoly has been able to raise its Gross Gaming Revenue in double-digits.
In fact, the company on Tuesday announced that it envisions a 10% annual revenue growth by the end of 2025.
NagaCorp is hopeful that the government’s update on the gambling laws in 2020 will ensure regulatory certainty which will have positive effects on the online gambling sector. Recently, the government had been imposing on its online gambling platform such that it is expected to reach its demise by the end of the year.
The Cambodian government is set to ban online gaming operations in a bid to preserve public order. Prime Minister Hun Sen announced that the government will stop issuing gambling licenses and policies to local and international operators