Our gaming operations are the cornerstone of our operations. As a leading supplier of gaming machines on a participation basis to select markets in the Pan-Asian gaming industry and as a future owner and operator of regional casinos in the Indo-China region,we believe we are well positioned to capitalize on the growth opportunities that exist in our target markets and to enhance our long-term returns.
Slot Operations: Our primary operations currently consist of purchasing and leasing electronic gaming machines on a revenue sharing (participation) basis to the rapidly growing and emerging gaming markets in Pan Asia. Our strategic presence and focus is on Cambodia and the Philippines. We secure long-term contracts to provide electronic gaming machines and related systems to premier hotels and other well-located gaming venues in Asia. We retain ownership of the gaming machines and systems and receive recurring fees or either a daily or monthly basis based on an agreed upon percentage of the net win per machine and provide on-site maintenance.
Since we began our slot operations in the fall of 2007, we have established a strong strategic presence in our focus markets of Cambodia and the Philippines with a total of approximately 1,400 electronic gaming machine seats in operation. In many cases, customers manage established facilities in high-trafficked locations and we work closely with the venue operator throughout the planning, development, and operational stages to program a gaming facility that maximizes profitability per visitor and per available square foot. However, where appropriate and permitted, we assume a manager role operating our electronic gaming machines in the venues.
Each venue is uniquely designed and developed to address the specific demographics and market influences of our target customers. We deliver value-added planning services after carefully analyzing each project and we provide a full-suite of gaming technology solutions, including market leading slot machines and systems that offer the highest potential revenue and earnings. We configure typically 100% of the floor in our venues on long-term contracts of five years or more, which ensures that our interests are aligned with the facility owner or operator.
Entertainment Gaming Asia Inc. brings significant competitive advantages to its relationships with venue owners. We have an experienced management team with deep relationships across Asia and a full understanding of the regulatory, political, and social issues in these markets. We have established strong goodwill and relationships in our markets and possess the necessary Pan-Asian infrastructure and operational expertise to ensure regulatory compliance. In addition, we have established important relationships with major gaming equipment suppliers to ensure that we deliver premium gaming products to our customers’ venues.
Casino and Gaming Development: Leveraging our market expertise and presence from our slot operations, we intend to expand our gaming operations and develop our regional casinos and slot venues under our “Dreamworld” brand in select emerging markets in the Indo-China region. This approach allows us the potential for higher long-term incremental returns on our operations given the ability to collect a higher percentage of the net win of our gaming stations. In addition, it provides us greater long-term control of our operations.
Currently, we have three Dreamworld projects in Cambodia. The first is a casino located in the Pailin Province at the Thailand border ("Dreamworld Pailin"), the second is a slot hall located in the Economic Free Zone of Poipet near the Thailand border (“Dreamworld Poipet”), and the third is a casino located in the Kampot Province near the Vietnam border ("Dreamworld Kampot").
Dreamworld Pailin is located on a growing trade route with solid infrastructure between Cambodia and Thailand (approximately four hours from Phnom Penh and three hours from Bangkok by car). It caters to mass market and premium players from the major nearby cities in the region and is one of a few existing casinos in the area and the closest to the border checkpoint.
The initial phase of the casino opened in May 2012 and houses 26 table games and 52 electronic gaming machine seats. The initial phase has a footprint of approximately 16,000 square feet, and we have the opportunity to lease at a future date the adjacent land to develop additional phases of the project. Such additional phases are intended to include expanded casino operations and complementary facilities such as hotel rooms, a spa and other entertainment amenities.
Dreamworld Poipet is a slot hall which we developed and operate as a stand-alone extension of an existing popular casino in the attractive Poipet market. Located within Cambodia’s Economic Free Zone and at the junction of an important trade route connecting Bangkok and Phnom Penh, Poipet is Cambodia’s most significant border crossing with Thailand and is an established and growing gaming market with limited real estate for future gaming development. Dreamworld Poipet is located in a very prominent location and caters to mass market and premium players.
The slot hall is constructed on land measuring approximately 16,000 square feet and houses 300 electronic gaming machine seats. It also features entertainment and food and beverage offerings. Dreamworld Poipet soft opened on March 28, 2013.
Dreamworld Kampot will be developed under a joint venture company on approximately 90,000 square feet of land strategically located near one of southern Cambodia’s busy border crossing checkpoints with Vietnam. One of a few gaming establishments in the area, the casino will cater to visitors from several major metropolitan areas in the region.
The casino is initially expected to include up to 14 table games and 25 electronic gaming machine seats. Based on the current development timeline, the initial phase is expected to open in 2013. Subsequent development phases could, depending on market demand, include additional casino floor space and equipment as well as complementary facilities such as hotel rooms, a spa and other entertainment amenities.
We continue to actively seek new potential projects in the region to achieve our growth objectives and our goal of becoming a leading developer and operator of casinos and gaming venues in the Indo-China region.