Scientific Game

Donaco expecting AU$144 million impairment on Star Vegas casino license

Tuesday, 13 February 2018 19:53
Share
Visit us

Australian-listed Donaco International Ltd has estimated an impairment on the casino license of its Star Vegas property in Cambodia of around AU$144 million due to breaches of an agreement with its former vendor.

In a filing to the Australian Securities Exchange ahead of the release of the company’s half year December 2017 financial results, Donaco said it had been informed by its auditors, Crowe Horwath, that there are indicators of impairment applying to its Star Vegas casino license based on the preliminary results of the business for the six months to December 2017.

“The impairment of the Star Vegas business is a direct result of the breaches of agreement by the Thai vendor, Mr Somboon Sukcharoenkraisri, and his two sons, ‘Ham’ Techatut Sukcharoenkraisri and ‘Qoo’ Bhuvasith Chaiarunrojh,” Donaco said.

“The company has commenced litigation against Mr Sukcharoenkraisri and his sons over their breaches of their agreements, which specifically relate to the operation of competing casino and gaming businesses in the Poipet area.”

Donaco announced in December that it had won a preliminary injunction against its former vendor for continuing to run gaming operations in defiance of non-compete provisions.

Under the terms of the non-compete provisions, the vendor is not allowed to be involved in any other casino or gaming business in the Poipet area but had previously been granted permission to host gaming facilities under the management of Donaco in a deal that saw the latter paid a monthly management fee of THB 5 million (US$151,000). That agreement expired last year with no new management arrangements put in place.

Donaco has also commenced arbitration proceedings in Singapore where it is claiming damages of US$120 million.

In more positive news, Donaco announced on Tuesday that it has appointed Gerald Tan as Chief Operating Officer. Tan is currently Vice President of Business Development at Donaco where he spearheads Donaco’s business partnerships and VIP/junket operations at Star Vegas.

“He has played a key role in rebuilding the VIP business over the past six months, following the former vendor’s breaches of his agreements. In this new role, Mr Tan will continue to be based primarily in Poipet, with a focus on driving revenue and earnings from the Star Vegas business,” Donaco said.

What's new

AGTech wins two more bids for China Sports Lottery

AGTech wins two more bids for China Sports Lottery AGTech Holdings Limited has announced that its wholly-owned subsidiary, Beijing AGTech GOT Technology Co., Ltd. (GOT), has won two more lottery hardware bids for China Sports Lottery in Zhejiang Province and Jilin Province, bringing the total number of successful bids for GOT in 2018 to 10 followin... Friday, 20 July 2018 06:26

Grand Lisboa Palace to open in stages, SJM boss reveals

Grand Lisboa Palace to open in stages, SJM boss reveals Grand Lisboa Palace, the HK$36 billion (US$4.6 billion) integrated resort currently being built in Cotai by SJM Holdings, will be opened in stages as the company races the clock to have the property ready before 2020. The project update was delivered by SJM Vice-Chairman, Executive Director and CEO... Friday, 20 July 2018 06:17

Japan’s IR bill likely to become law today after passing Cabinet Committee

Japan’s IR bill likely to become law today after passing Cabinet Committee Japan’s IR Implementation Bill is expected to finally become law today after passing one last hurdle on Thursday. The IR bill, which allows for the development of Japan’s first integrated resorts in three yet-to-be-specified locations, passed through the Cabinet Committee of the House of Council... Thursday, 19 July 2018 23:58

VIDEO: Week in Review

VIDEO: Week in Review Inside Asian Gaming takes a look back at the biggest stories of the past week. Thursday, 19 July 2018 22:50

Current Issue

Moving ahead

Moving ahead A year after the deadly attack at Resorts World Manila, management continues to reinvent the property to recover and meet the challenge from Entertainment City rivals. By Muhammad Cohen | Editor-at-Large   The tragic events of 2 June 2017 at Resorts World Manila sent shock waves across the Phili... Friday, 29 June 2018 01:32

"This is not a drill..." Gaming businesses must plan judiciously for emergencies such as the Resorts World Manila attack, natural disasters and accidents so they can respond effectively when best plans fail. By Muhammad Cohen   Arson at Resorts World Manila a year ago, Typhoon Hato battering Macau last August and the La... Friday, 29 June 2018 01:24

Five signs that your organizational culture is toxic to customer experience

Five signs that your organizational culture is toxic to customer experience IAG explains the importance of company culture in achieving exceptional customer experience and the five signs that your culture might be toxic to your customer goals. By Sudhir H. Kalé, Ph.D.   Numerous studies on customer experience (CX) highlight the crucial role company culture plays in del... Friday, 29 June 2018 01:18

Height of Luxury

Height of Luxury With the opening of its new luxury hotel at City of Dreams in June, Melco Resorts is looking to take control of Macau’s lucrative premium mass segment. By Ben Blaschke   “We’re not just opening a new hotel today, we’re opening a whole new chapter. We’ve built a landmark for Macau and a... Friday, 29 June 2018 01:08