NagaCorp’s Phnom Penh exclusivity period extended to 2045

Hong Kong-listed NagaCorp has announced it has entered into an agreement with the government of Cambodia to extend its gaming exclusivity in Phnom Penh by an additional ten years. 

The company operates under a 70-year license, in which the company has the exclusive rights to operate casinos within a 200-kilometer radius of Phnom Penh until 2035.

Under the new agreement, the exclusivity period has been extended to 2045.

In exchange, NagaCorp has paid a US$10 million fee to the government and will pay an additional US$3 million on an annual basis for 10 years. 

The company’s Naga 3 development, which involves an investment of approximately US$3.5 billion, was also taken into account when it was granted the extension, it said. 

Analysts viewed the extension as a positive, particularly for the company’s upcoming Naga 3 project, which is anticipated to open in 2025.

Union Gaming analysts said the extension effectively doubles the available runway for Naga 3, therefore making the return profile of the project much better and with greater visibility. 

“While the Naga3 project is long-dated, we remain bullish on the project in part due to the transformational nature of the Naga2 project (November 2017) and the impact it has had on Phnom Penh as a gaming destination,” said the analysts. 

Previous articleLocal government IR licensing proposals accepted from January to July 2021
Next articleChinese tourist growth slowed by HK protests

Related Articles

Rightsizing Cambodia’s casino industry post-Covid 19

Rightsizing Cambodia’s casino industry post-Covid 19

Through government action and a cultural norm of wearing face masks when ill, Cambodia has seen few get sick during the COVID-19 pandemic. According to the World Health Organization, Cambodia has 275 COVID cases and zero COVID-related deaths as of the last week of September. 

Primorye’s gaming hub dream edges towards reality

The concept of a casino and entertainment hub in Russia’s Far East will take a further step towards fruition this summer with the expected opening of the Shambhala Casino.

Cambodia gaming down but not out after Covid-19, online gaming ban

Cambodia’s gaming industry has taken a major knock from the Covid-19 crisis and last year’s ban on online gaming, but those on the ground are optimistic it will bounce back stronger than ever.

Covid-19 turns out lights in most of Asia’s casinos

From India to Australia, casinos across the Asia Pacific region have closed their doors in response to efforts to combat the spread of the coronavirus, with little to no visibility at present as to the evolution of the situation.

Primorye project seen moving ahead despite crisis

The Primorsky Krai Development Corp (PKDC), which is responsible for management of the Primorye gaming zone, expects a key project to move ahead in May this year, despite the outbreak of the coronavirus and remains upbeat about the region’s longer-term prospects.

Sihanoukville strives for mass market transformation

While it’s too early to say Cambodia’s coastal gambling hub has risen phoenix-like from the ashes, there are encouraging signs that Sihanoukville is serious about transforming into a mass market tourism destination, with a significant improvement in urban infrastructure.

NagaCorp says opening momentum sustained

NagaCorp said the momentum it has seen on its gaming floors since reopening to the public in August appears to have been sustained through to end September, led by the mass market.

NagaCorp eyes Cambodia expansion

NagaCorp said it intends to explore expansion in Siem Reap and Sihanoukville, but suggests the properties won’t necessarily include gaming.

NagaCorp manages US$20.6 million profit in H1

Hong Kong-listed NagaCorp bucked the negative trend and recorded a US$20.6 million profit in H1, in spite of a temporary closure related to the Covid-19 pandemic. GGR for the half came in at US$372 million, more than 72 percent of it deriving from the VIP segment. As of June 30, the company’s cash and deposits […]

NagaCorp cleared to resume mass market business

NagaCorp announced on Sunday that it has been permitted to reopen for full business, effective immediately, including mass market services. The company had applied to the Ministry of Health under government regulations, and according to the release the ministry responded on Saturday giving the go-ahead. NagaCorp has resumed its mass market, VIP, and slot machine […]