Macau satellite casino operator Emperor Entertainment Hotel Ltd has defended the process by which it reached an agreement with Macau concessionaire SJM Resorts over the percentage share of gross gaming revenue it will be paid for providing management services at Grand Emperor Hotel.
Emperor E revealed in late December that it had signed a new three-year deal with SJM to provide day-to-day operations at Grand Emperor through until 31 December 2025 in return for a percentage of gross gaming revenue, to be settled on a monthly basis. While the company didn’t detail exactly what that percentage would be, it did reveal that its GGR share would be capped at HK$100 million (US$12.5 million) for the three months to the end of its financial year on 31 March 2023, HK$400 million (US$50 million) for the year ended 31 March 2024, HK$600 million (US$75 million) for the year ended 31 March 2025 and HK$700 million (US$87.5 million) for the nine months to 31 December 2025.
In a Tuesday filing, Emperor E outlined the processes it used to arrive at its agreed percentage share of GGR, stating the terms were “thoroughly discussed among representatives of SJM, Emperor E Hotel and other service providers of SJM to ensure alignment of the terms of the agreements.
“The management of Emperor E Hotel has also compared the Percentage Sharing with the historical percentage sharing on gross gaming revenue of other service providers of SJM based on the market available information.”
Emperor E also took into account the current tax rate levied on gaming revenues in Macau, it explained, adding that its share represents a “majority” of monthly GGR from the property’s gaming area.
“In light of the above and to the best knowledge, information and belief of the directors of the companies having made all reasonable enquiries, they are of the view that the terms of the Agreement are on normal commercial terms, fair and reasonable and the Percentage Sharing is in line with the rate offered to other service providers of SJM,” it said.
Emperor E’s service agreement gives the company responsibility for managing and decorating the gaming area at Grand Emperor, providing and adapting gaming equipment, and bearing operational expenses including staff salaries.
RelatedPosts
