Angela Leong’s L’Arc Entertainment has signed a new services agreement with SJM Resorts under which it will continue providing casino management services at Macau’s L’Arc Hotel for the next three years.
The agreement, which officially runs from 1 January 2023 until 31 December 2025, will see L’Arc Entertainment – a company wholly-owned by Leong – run the casino at L’Arc in return for a share in gross gaming revenues earned.
That share will be capped at HK$253.1 million (US$32 million) in 2023, rising to HK$351.7 million (US$45 million) in 2024 and HK$450.1 million (US$57 million) based on historical revenues, the expected recovery of visitor arrivals and GGR in Macau, the number of gaming tables in operation at L’Arc and other factors.
Leong, the fourth wife of the late Dr Stanley Ho, is also Chief Administration Officer at SJM Resorts, and Co-Chairman and Executive Director of its Hong Kong-listed parent company, SJM Holdings.
SJM, which has nine satellite casinos operating under its license in Macau, said it considered the signing of a new services agreement with L’Arc Entertainment as being beneficial to its business.
“The transaction under the L’Arc Services Agreement had been ongoing since 2009 and till the end of 2022,” it said.
“The Directors, including the independent non-executive directors but excluding Ms Leong, consider that entering into the Renewed L’Arc Services Agreement is a continuation of and in line with the Group’s business of operating various casinos owned by third parties, which is in the ordinary and usual course of the business of the Group.”
L’Arc Hotel was one of 11 satellite casinos named by the Macau government as continuing to operate beyond 1 January 2023 under the SAR’s new gaming law, down from 18 satellites previously.
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