Amax Takes Steps to Bolster Presence on Cambodian VIP Gambling Market

On Monday, 4th September, Amax International Holdings Ltd, a company investing in Macau casino and entertainment business operations, issued a filing to the Hong Kong Stock Exchange in which it announced that the company has inked a Letter of Intent, seeking to expand its operations on the Cambodian gambling market. Amax expressed its willingness to assume the control over a VIP room at a casino, which name is not specified yet.
More Details Regarding the Potential Deal
Being one of the major Macau casino investors, it is not a surprise that Amax seeks to bolster its presence in the Cambodian VIP gambling market. The company restrained from specifying the name of the casino in which the VIP room is located, but it became clear that it is to offer 13 baccarat tables and is owned by a citizen of the People’s Republic of China. After signing the Letter of Intent, Amax is given a deadline up to 30th October to announce its final decision.
The news for the signed Letter of Intent came on Monday, explaining that it is a non-binding deal and both parties have still time to negotiate the terms and conditions of the eventual agreement. In case both parties shake their hands, Amax will be required to pay a monthly charge for the coming 2 years, receiving exclusive rights to operate the VIP casino room. Prior to the sealing of the deal, the two parties should arrange certain legal requirements and present an anti-money laundering plan.
Earlier this year, and more particularly in March, the United States’ Department of State issued a report, in which it warned Cambodia to tighten its regulations regarding non-financial sectors, including gambling activities. In another filing, issued again on Monday, Amax reminded that it had already appealed a Macau court, asking for permission to assign its Chairman and Chief Executive Ng Man Sun the task to monitor the Greek Mythology’s operations as a part of money laundering crackdown.
Amax’ Relations with Greek Mythology Casino
Amax is known to have 29.8% equity interest in the Macau-based Greek Mythology Casino. In 2015, the casino suspended any operations for 6 months. The casino representatives explained that the temporary cessation of the casino’s operations was due to a renovation project. The Beijing Imperial Palace Hotel, where Greek Mythology was located was also closed by the Macao Government Tourism Office for 6 months. It was explained that this is a sanction imposed due to unapproved renovation work and certain administrative violations, which resulted in license revocation.
By the end of October, it will become clear if Amax will take the control over the unspecified VIP casino room in a Cambodian casino. Market specialists project a bright future for Amax, in case the company seals the deal, as it will be able to bolster its presence in the market and boost its profit even more.