NagaWorld in Phnom Penh to Add 250 Gaming Machines

NagaWorld, an indirect wholly-owned subsidiary of NagaCorp, has entered into a joint venture agreement with Zhiyou International,an independent third party Chinese investor,  for Zhiyou to supply and place 250 electronic gaming machines in an entertainment area called NagaWorld Music Café located on the first floor of the hotel wing of NagaWorld in Phnom Penh, Cambodia.

In consideration of the grant by Naga for Zhiyou to place 250 machines in the prescribed gaming area, Zhiyou has paid to Naga an amount of US$8,000,000 as a non-refundable upfront fee.

In this agreement, Zhiyou shall bear all the costs for purchase of all 250 gaming machines while Naga shall provide the rights and the physical space and be responsible for the daily management of the gaming machines and prescribed gaming area.Naga shall be entitled to 60% of the revenue generated by the machines while Zhiyou shall be entitled to 40% of such revenue.

From the commencement date, Zhiyou shall be entitled to receive only the gaming revenue attributed to the gaming machines in the prescribed gaming area until it recovers all the fees. Thereafter, Naga and Zhiyou shall start sharing the gaming revenue according to the Revenue Sharing Ratio (60%/40%).

The commencement date of operation of the gaming machines is expected on or before 30 June 2011. The agreement is for a term of five years from the commencement date.The new deal will increase the total number of gaming machines at Naga from the present number of 1,050 to 1,300.

Source = asiatraveltips