Dreamgate Corporation Bhd, the Malaysian company that manufactures and distributes gaming equipment via its multiple subsidiary RGB, says the current economic downturn makes sharing revenue with casino operators an attractive proposition.
“Everybody wants to be conservative and with the tightening in the market, they are also delaying their purchasing. So as a result, we have many opportunities to tap more into this [revenue sharing] market where in the past, there wouldn’t be such an opportunity,’ said Datuk KS Chuah, Dreamgate’s managing director, in comments to the regional media.
“In the past, Macau [casinos] wouldn’t offer you a concession programme because the absolute term return there was very good so they wouldn’t share it with you,” he added.
Mr Chuah said that in the changed trading conditions his company was prepared to offer casino operators in Macau and elsewhere the chance to have brand new machines on a revenue share basis without the up front capital costs of outright purchase.
“To date, we have signed many deals. We have at least 2,500 machines in revenue-sharing deals,” explained Mr Chuah.
Dreamgate’s net profit for 2008 fell nearly 75 percent year on year to RM10.4 million (USD2.82 million)
But the company said it expected new business in Macau and the Philippines to absorb the impending loss of income in Cambodia caused by the government’s closure of slot clubs in the capital Phnom Penh.
Dreamgate added that the average income per machine per day for Cambodia was around USD70, whereas in Macau it was between USD130 and USD250 and in the Philippines between USD100 and USD180.
Mr Chuah said the company was also looking to build margins by assembling more equipment on behalf of third party companies.