Electronic gaming machine (EGM) firm Entertainment Gaming Asia has sold the entire estates of appliances it leased to Cambodia’s NagaWorld Hotel And Entertainment Complex and the Leisure World VIP Slot Club in the Philippines.
An indirect subsidiary of Hong Kong-listed conglomerate Melco International Development Limited, Entertainment Gaming Asia is developing a free-play online casino platform for Asian markets and revealed that it disposed of the collections of 824 machines for a combined price of $3.25 million.
The Phnom Penh deal saw Entertainment Gaming Asia offload its estate of 670 seats to a Cambodian third-party for $2.5 million while it made $750,000 by selling the 154 units it leased to the Philippines venue in the province of Pampanga following the expiration of its contract.
Entertainment Gaming Asia stated that it continues to lease EGM units to two Cambodian venues while declaring that it is working “swiftly” to renew contracts retroactively with a pair of casinos in the Philippines.
“We continue our strategic efforts to refine our business operations and position ourselves for new potential opportunities,” read a statement from Clarence Chung, Chairman and Chief Executive Officer for Entertainment Gaming Asia. “While the exit from two EGM leasing contracts will have a negative impact on our near-term cash flow, we believe the cash proceeds of the sales will further enhance our ability to pursue new growth opportunities that will fuel long-term growth for the company.”