Century Entertainment International Holdings Ltd, a well-known company listed in Hong Kong, has made significant changes to its operations in Cambodia. The company has terminated its contracts with the Dara Sakor casino in Koh Kong Province, citing a failure to comply with the conditions of the agreements. However, despite this setback, Century Entertainment remains committed to building its presence in the country.
The terminated contract, which involved table games, was held with LongBay Entertainment Co. Ltd., the owner of the casino. The agreement was signed with Century Entertainment’s Chairman Ng Man Sun’s company, Lion King Entertainment Co Ltd, allowing Lion King to lease the casino from May 1, 2021, to April 30, 2036, for a total of HKD 58 million (US$7.4 million) for a five-year operation period.
However, issues arose when Century Entertainment discovered discrepancies in the analysis of profit and loss over the previous three financial years. The company found that a more detailed analysis was needed to ensure that the net income stream, particularly in relation to the New Gaming Table Business Rights, complied with records and books. Additionally, certain operating expenses were provided by Lion King based on estimations, without proper cost allocation.
As a result of these issues, Century Entertainment and the involved parties have mutually agreed to a Termination Agreement, which absolves all parties of their duties and obligations related to the business. While no deposits or compensation will be exchanged, the Group’s operations and financial position will remain intact.
Despite the termination of the contract with Dara Sakor casino, Century Entertainment is actively negotiating the terms of a potential casino lease and operating agreement with LongBay Entertainment Co. Ltd. The company aims to continue operating the VIP room located in Long Bay, Dara Sakor, Cambodia, and to engage in various gaming activities under the operating license granted by LongBay Entertainment.
Overall, Century Entertainment remains resilient in its commitment to building its presence in Cambodia, demonstrating its determination to overcome challenges and continue its operations in the country.