RGB close to US$25m deal

GEORGE TOWN: RGB International Bhd (formerly known as Dreamgate Corp Bhd) is close to securing a US$25 million (RM76.8 million) contract to supply 1,000 gaming machines to one of the four casino concessionaires in Bagong Nayong Pilipino-Entertainment City Manila, said group executive director Steven Lim Tow Boon. The contract will be based on a concession model whereby RGB has a share of the revenue from the machines.

Bagong Nayong, expected to open in 2013, is an integrated resort (IR) project initiated by the Philippine Amusement and Gaming Corp (Pagcor), a Philippine government-owned entity engaged in the entertainment and gaming business.

The previous Philippine government under president Gloria Arroyo awarded four casino concessions in 2008 on the Bagong Nayong reclaimed land in Manila Bay. Japanese gaming firm Aruze and a Philippine joint-venture with Genting Hong Kong Ltd won two of the concessions to develop casinos and hotels on the land, while Philippines high-end property developer Belle and Bloombury, headed by Philippine business magnate Enrique Razon, won the other two concessions.

Lim did not elaborate on which of the four casino concessionaires is presently in discussion with RGB on the contract for the 1,000 machines.

RGB  had also received an order in February from Pagcor for the placement of 1,700 gaming machines, also under the concession model, throughout 11 existing casinos and slot machine areas in the Philippines. To date, RGB has shipped out 108 of these machines and another 500 will be delivered by September.

With a booming gaming industry in the Philippines, Lim said RGB is hoping to increase its market share there by 10 percentage points this year from its current 30%, through increasing its outright sales of gaming machines, apart from supplying the machines through the concession business model.

"Half of the outright sales of gaming machines expected this year, amounting to RM100 million, will be derived from the Philippines. Last year, RM35 million out of a total outright sales of RM70 million was from the Philippines," Lim said.

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.