If the world’s house could talk, it would probably be saying
that the hottest bet in town is on Asia. Gaming insiders agree. Asia is the
most promising market for the expansion of the global casino gaming industry
and the world’s largest casino gaming market. Entertainment Gaming Asia Inc.
(NASDAQ: EGT) is a gaming company with an eye on this emerging gaming market.
Its primary business is in the area of gaming operations, which include slot
machine and Dreamworld development operations.
Under EGT’s slot operations, the company provides electronic
gaming machines using a revenue sharing model within the emerging gaming
markets in Pan Asia. Its current focus is on the Cambodia and Philippines
markets. The company’s strategy pursues long-term agreements to provide
electronic gaming machines and related systems to top hotels and gaming venues
in Pan Asia. Entertainment Gaming Asia retains ownership of the gaming machines
and subsequently receives a percentage of the recurring revenue. EGT’s business
terms also provide on-site maintenance of their machines.
By way of leveraging its market expertise in slot
operations, EGT endeavors to expand its gaming operations and develop regional
casinos and slot venues under the “Dreamworld” brand in emerging markets in the
Indo-China region and other growing gaming markets in Asia. This approach
uncovers EGT’s potential for higher long-term incremental returns on its
operations given the ability to collect a higher percentage of the net win of
its gaming stations.
Dreamworld Poipet is a slot hall which the company developed
and operates as a stand-alone extension of an existing popular casino in the
Poipet market located near the Cambodia-Thailand border. Located within
Cambodia’s Economic Free Zone and at the junction of an important trade route
connecting Bangkok and Phnom Penh, Poipet is a significant border crossing with
Thailand and is an established regional gaming market. EGT’s Dreamworld Poipet
is approximately 16,000 square feet and holds 300 electronic gaming machine
seats. It also offers entertainment and food and beverage offerings.
With broad market knowledge, the company is doing well
leveraging its established goodwill and government relationships. EGT is also
focusing on its growth initiatives in selected markets in the Indo-China
region. Industry data suggests these markets are experiencing robust growth as
a result of favorable demographic trends, liberalization of economic policies
and an upward trend in foreign investment.
The company believes their gaming operations and the
favorable economic trends in these markets provide a foundation for future
growth in the region as a provider of electronic gaming machines on a
participation basis and as an owner/operator of regional gaming venues.
For more information on the company, visit
www.elixirgaming.com
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