Rich Goldman Holdings announced in a filing to the Hong Kong Exchanges and Clearing (HKEX) December 30, 2020, it signed a profit share agreement with the joint venture partner to commence junket business at Solaire Resort & Casino in Manila.
Junket Operations Cleared to Commence
The signed profit share agreement between the former Macau junket operator and its joint venture partner completed one of the conditions regarding a previous agreement reached in April 2020 under which a joint venture company with the purpose of bringing customers to a new VIP gaming room at the casino resort was established.
“The Group has been actively exploring possibilities to expand its gaming business and identifying new junket operators for its gaming business.”Rich Goldman Holdings
The new VIP gambling room at Solaire Resort & Casino will be operated by Great Happy Century Ltd, a company owned by a former Macau partner of Rich Goldman, Tam Ka Wo, and shareholder of 49% or 490 shares valued at HK$490,000 of the joint venture, with the other 51% or 510 shares to the amount of HK$510,000 owned by Rich Goldman’s subsidiary Jade Enterprises Ltd.
“The Directors are of the view that the formation of the joint venture company in the Philippines with Great Happy represents a strategic move for the Group to diversify its gaming business into the Philippines.”Rich Goldman Holdings
As the profit share agreement is now signed, the joint venture partner will commence bringing customers to the live table games of the new VIP gambling room January 1, 2021. Initially, operations were scheduled to begin no later than 3 months after the April agreement which established the joint venture was reached, but the coronavirus outbreak threw a spanner into the plans.
The profit share agreement stipulates that the joint venture company will be entitled to 1% of the rolling turnover generated from the gaming tables in the VIP room on a monthly basis.
Previous Junket Experience
Rich Goldman’s previous experience working with junket operators in Macau ended in 2017, after it lost both partners, Hao Cai Sociedade Unipessoal Ltd and Hou Wan Entertainment Ltd, when Venetian Macao Limited (VML) terminated promotion agreements with them. Hao Cai operated 14 VIP tables at The Venetian Macao while Hou Wan supplied 10 VIP tables at Sands Macao with gamblers.
The company and its last junket operator in Macau, Hoi Long Sociedade Unipessoal Limitada, which supplied 8 VIP tables at SJM’s Grand Lisboa casino, parted ways in March 2020, Rich Goldman announced by that time.