Junket investor Rich Goldman Holdings Ltd has terminated its profit-share agreement for a VIP room at the Solaire Resort and Casino in the Philippines, citing a challenging operating environment and intense competition.
The junket investor began introducing customers to the VIP room at Solaire at the start of 2021 after completing a profit sharing agreement with its joint venture partner, an independent third party, Great Happy Century last January.
Rich Goldman said that it’s gaming and entertainment business has been adversely affected due to the prolonged social distancing and travel restrictions measures imposed by the local government in the Philippines.
In addition, the intense market competition in the Philippines has posed additional challenges. These resulted in unsatisfactory performance of the JV Company,” it said.
According to a filing from Rich Goldman to the Hong Kong Stock Exchange, termination of the profit sharing agreement came into effect on January 1, 2022.
Rich Goldman said it will focus its resources on other principal businesses in the meantime, namely, its money lending business, hotel operations business and property leasing business.