Thursday, March 19, 2015

Entertainment Gaming Asia Inc. (EGT) Points to Big Potential Payout in Asia’s Gaming Market

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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