Asian casino operator, NagaCorp Limited, has reportedly announced the signing of a deal that has seen the exclusivity clause attached to the gaming license for its giant NagaWorld complex in Cambodia extended by a further ten years.
According to a report from GGRAsia, the Hong Kong-listed firm used an official filing to detail that the agreement means that no other concern will now be allowed to open or run a casino within a 124-mile radius of Phnom Penh until at least the end of 2045.
NagaCorp Limited opened its 16-story NagaWorld development in 2003 with the venue currently offering a 700-room hotel alongside a luxury spa, conferencing facilities and a casino featuring a selection of over 1,500 slots alongside some 169 gaming tables. Although the venue’s initial gaming license is not due to expire until 2065, the associated monopoly provision only ran until the beginning of 2036 and meant that the operator could have been facing unwanted competition sooner rather than later.
GGRAsia reported that the extension arrangement inked by the operator’s Ariston Sdn Bhd subsidiary involved the upfront payment of a $10 million fee alongside a commitment that it will annually hand over some $3 million for the ten years from 2036. NagaCorp declared that it views the lengthening ‘as a long-term tourism infrastructure project’ that it hopes will allow it to ‘generate recurrent revenues for the company and its shareholders.’
Tim McNally, Chairman for NagaCorp, told GGRAsia that his firm’s venue in Phnom Penh has been experiencing growth due to an ‘expansion of tourism on the mass-market side’ in addition to ‘the migration of people from all over Asia’ to the Cambodian capital. He purportedly furthermore stated that the operator has a ‘very professional’ business model and management team, which means that ‘customers have confidence in doing business at our location.’
NagaCorp is currently in the process of adding a further 4,720 hotel rooms to its NagaWorld venue via the adjacent Naga3 development. The operator proclaimed that this $3.5 billion scheme should be open in time for 2026 featuring in excess of 5.8 million sq ft of floor space and could help to boost tourism while creating ‘thousands of jobs.’