Inside Asian Gaming

IAG JAPAN MAY 2019 28 COVER STORY IAG: Suncity recently signed an agreement with Golden Sun Sky to provide pre-opening and casino management services at a newUS$360million casino in Sihanoukville, Cambodia. What attracted you to Sihanoukville? AL: Well there are two steps for our service. For pre- opening we have the consultancy service helping with casino layout, how to work with the hotels, how to work with IT and putting together the team – providing that service. Once it opens we will go to a management agreement. We will take 3% of GGR and 5% to 6% of EBITDA. So roughly that’s equal to around 17 to 19% of the EBITDA. IAG: What are your thoughts on the large-scale development currently taking place in Sihanoukville? AL: When it first started being developed, these guys buying the property thought, “The rent can be HK$60 per square foot.” Well five years later it was still HK$60, 10 years later still HK$60. I think they skipped chapter one of the economics textbook – supply and demand. But it doesn’t matter to me. Why? I’m only a manager. I take fees. The risk is on the master. But I told my boss that I want to take this opportunity because if someone tells you it’s Coca-Cola you might not believe them, but if 10 million people tell you it’s Coca-Cola you believe them. That’s what is happening in Sihanoukville and that’s why we signed a management contract with a 30% option at cost after three years. We let someone else take the risk and we give ourselves an opportunity. We think Sihanoukville is the hottest opportunity in Asia right now.