Macau Legend Development Ltd will continue running casino operations at its peninsula property Legend Palace for the next three years after inking a new service agreement with Macau concessionaire SJM Resorts S.A.
In a Friday filing, Macau Legend revealed its wholly-owned subsidiary Hong Hock Development Co Ltd had entered into the agreement with SJM on 28 December for the “provision of services in selling, promotion, advertising, customer development and introduction, coordination of activities and other related services to SJM for the operation of casinos to be operated under SJM’s gaming concession as agreed by SJM for a term of three years commencing 1 January 2023.”
The company will receive a percentage share of gross gaming revenue from Legend Palace, calculated on a monthly basis in accordance with the operating performance of mass gaming tables and slot machines, and after deducting costs and expenses. While Macau Legend did not reveal what percentage of GGR this would entail, it explained the monthly consideration was determined with reference to the historical percentage sharing of GGR earned under its previous agreements with SJM.
This new agreement will come as welcome news to Macau Legend, which had previously expressed a desire to continue operating its satellite casinos despite changes to Macau’s gaming law which prevents satellite operators from entering into revenue share agreements with concessionaires. The agreement does not include Babylon Casino, which was previously operated by Macau Legend under license of SJM but did not appear on a list of 11 satellite casinos announced by the Macau government as continuing to operate under the city’s new 10-year gaming concessions.
The company announced only last week that it will no longer participate in the VIP gaming promotion business after terminating a long-running agreement with New Legend VIP Club Ltd.
RelatedPosts
