Inside Asian Gaming

January 2008 | INSIDE ASIAN GAMING Regional Roundup 35 Exceeding guidance EGT has made a knack of exceeding its market guidance, and is a refreshingly con- servative forecaster among Asia’s often over- bullish gaming companies. EGT management estimates that net win will average $125 per machine per day in the first year of a venue’s operation and net win/ day will grow to $200 as the venue matures. The average win/day per machine in Philippines is currently $200 per day on old- er obsolete machines. The average win per day in Cambodia and Vietnam is over $200. Mr Stevens observes:“A newly opened gam- ing venue takes time to mature. Hence, it is conservative to gradually scale up to $200 win per day per machine over the first 12 months of the venue’s operations. “As a reality check, there are currently venues in the Philippines that are averaging over $400 per day.Hence, one could logically conclude that the average net win/day for a mature venue with top-quality gaming ma- chines could well exceed $200.” EGT’s business model means its revenue is entirely recurring, and any increase in its installed base of machines will feed through directly to its profits. Given EGT’s solid start in quickly ramping up its installed base over its first three months of operation, expect revenue to keep pace. About Elixir Gaming Technologies Elixir Gaming Technologies, Inc. (EGT) is a member of Elixir Group, an innovator of gaming technology solutions and a wholly owned subsidiary of Hong Kong-listed Melco International Development Limited. EGT, in collaboration with Elixir International (which is also a member of Elixir Group), secures long-term contracts to provide comprehensive turn-key solutions to 3, 4 and 5 star hotels, cruise ships and other well-located venues throughout Asia that seek to offer casino gaming products. Elixir International assists the venue and venue owner with the licensing and regulatory process, physical casino design, construction management, slot and game floor design layout, purchases the gaming machines and systems from the industry’s leading gaming equipment suppliers and installs the gaming machines and systems such that the casino is delivered in a fully operational state. EGT retains ownership of the gaming machines and systems and receives a recurring daily fee of at least 20% of the net gaming win per machine and provides on-site maintenance. About Elixir Group Elixir Group is an important strategic component of Melco International Devel- opment Limited’s gaming and leisure entertainment focus. Elixir Group designs, de- velops and supplies gaming machines and technology solutions (surveillance, LEDs, ATMs) for the Asian market. With gaming research and development centres in Macau and the Philippines, prox- imity to key growth markets provides Elixir Group with a competitive edge. Elixir Group’s wholly-owned subsidiary, Elixir International, delivers solutions, sales advice and profes- sional gaming support. Elixir International has forged alliances with leading gaming and technology companies, and by accessing its partners’ manufacturing capabilities, focuses entirely on innovative product design and customer service. Elixir International has also secured several strategic agreements in the provision of gaming technology infrastructure for various gaming concession holders in Macau.