Century Casino 2018 Vietnam Loss Cap $3.6M
Century Casino Inc. said its exposure to venture losses in Vietnam in fiscal 2018 is limited to less than US$3.6 million. The U.S.-based casino, gaming and entertainment company announced its interest in companies with certain rights to its gaming business at Vietnam’s northern border with mainland China in April.
Century Casino is a part-owner of a gaming club consisting of nine electronic table games. The club is 100 meters (about 300 feet) from the point where mainland China borders the northern province of Chaobang in Vietnam.
Century Casino said in its 2018 annual financial report to Nasdaq on Monday that the sum of Vietnam’s loss limits up to Dec. 31 was related to its commitment to acquire shares of Vietnamese company Minchau by April 2021. Century Casino Austrian subsidiary Century Resorts Management GmbH controls 51% of Hong Kong’s Golden Hospitality Ltd.
Golden Hospitality said it would acquire 51% of Minchow (roughly $3.57 million) by April 2021, but owned a 9.21% stake as of October last year.
It is Minh Chau who runs a game console club in a 32-room hotel in Ta Lung, on the China-Vietnam border, convenient for Chinese visitors, where gambling is banned in mainland China. Vietnamese citizens are not allowed to enter the game facility. The facility is about a four-hour drive from Nanning, the provincial capital of Guangxi Province.
Golden Hospitality manages the facility in exchange for a commission from Minh Chau, which is 26% of the company’s net profit, and has the option to buy an additional 19% of the Vietnamese company to take ownership up to 70%. The facility has a local investment certificate that allows up to 26 e-table games.
“The Company has excluded the presentation of Minchow’s financial information following the Company’s decision that Minchow’s financial results were insignificant compared to the Company’s consolidated results,” the Century Casino annual report said
In a phone call with investment analysts on Monday, Peter Hoi-chinger, vice chairman and co-chief executive officer of Century Casino, said: “Vietnam is developing as planned, step by step, small.”
Asked about the potential expansion, Century Casino President and Co-CEO Ervin Heitzman said there would be no growth in relation to Vietnam before the end of the year. “We’re investing some small amounts and upgrading our existing facilities,” Heitzman said. “And we’re at least until the end of the summer or by the end of the year … I want to see and decide how it affects.”
Last year, Brokerage Union Gaming Securities LLC said in a research note that Century Casino “wants to expand into Asia where investors have expectations.”
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