Declines continue for EGA (#Casino) + Adult venues to be targeted

[geovalin]

Declines continue for EGA

Mon, 12 May 2014

Eddie Morton

Casino operator Entertainment Gaming Asia (EGA) reported a 29 per cent decline in revenue during the first three months of the year, continuing its streak of poor financial results.

EGA’s first-quarter financial statement, published on the company’s website on Friday, shows gaming revenue totalled $4.1 million, down 25 per cent from $5.5 million in the first three months of last year.

Revenue from the 1,000 slot machines EGA has across two Dreamworld casinos on the Cambodia-Thailand border, NagaWorld in Phnom Penh and Thansur Bokor in Kampot province reached $2.9 million, down 10 per cent on the previous year’s results.

“The decrease in gaming operations revenue for the first quarter of 2014 was largely due to the decline in revenue from Dreamworld Pailin,” EGA CEO Clarence Chung said in the statement, adding that political tensions in both Cambodia and Thailand had also contributed to the declines.

“We are focused on improving the performance of our gaming operations despite the political tensions that impact certain [areas] of
our markets.”

The latest financial results come after the firm reported an overall 9 per cent revenue decline for 2013. EGA’s 2013 annual report stated that it expected further losses.

On April 17, US securities exchange NASDAQ issued EGA with a warning that it was in breach of the minimum bid requirements of at least $1 per share.

NASDAQ granted EGA a 180-day grace period to return its share price to the minimum requirement. At Friday’s close, EGA stock remained at $0.84 per share.

If EGA fails to meet the minimum bid for 10 consecutive days by October 14, and through a second 180-day grace period, the company may be delisted entirely.

In January, EGA announced it was walking away from its Pailin casino operation, which opened in May 2012, citing a failure to lure gamers from across the Thai border.

“We remain committed to our gaming development strategy and are actively seeking new projects in Indo-China and other growing gaming markets in Asia that have the potential to drive meaningful long-term growth for the company,” Chung, said in the May 8 financial statement.

EGA did not respond to requests for comment.

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Adult venues to be targeted

Mon, 12 May 2014

Hor Kimsay and Eddie Morton

Cambodia’s notorious adult-entertainment industry will soon be subjected to highter scruitiny and increased policing with the Council of Ministers on Friday passing a sub-decree aimed at cleaning up the seedier side of Cambodia’s nightlife.

Phay Siphan, spokesman for the Council of Ministers, said ministers agreed to pass a draft of the sub-decree last week. Entertainment business such as bars, nightclubs and KTV lounges that are unlicensed, or found to be involved in drug or human trafficing, gang-related activity or under-aged drinking practices will be targeted, he said.

“Now, we have a sub-degree to control the entertainment places. So we hope that it can eliminate a big number of any negative issues,” he said.

Siphan did not detail how authorities would utilise their new powers but said it was an important step in cleaning up the industy’s image.

“These negative activities can be impacting Cambodia’s tourism industry,” he said.

According figures from the Ministry of Tourism, there are 659 entertainment-related businesses throughout Cambodia, provinding more than 11,300 jobs. Of those businesses, nearly 180 are unlicensed.

“There is a small number of businesses that operate and create problems that then negatively affect our society such as exessive noise, attracting gangsters, encouraging students to not study, prostitution, or trading or consuming drugs,” a statement from the Council of Ministers relased Friday says.

Lay Heang, general manger of New Star KTV in Siem Reap, told the Post that enforcing the sub-decree and penalising illegal, unlicensed operations will benefit legitimate entertainment service busineseses.

“Having the laws better managed will help build a better image for the industry as a whole and ensure confidence in our customers,” he said.

Sreng Veasna, owner of Olympic Luxury Club, a disco and KTV lounge in Phnom Penh’s Chamkarmon district, also welcomed the Council of Ministers’ move.

He said law-breaking entertainment businesses harm the flow of customers for other businesses. But, in general, people who do allow such practices at their business, tend to be well connected.

“If we can eliminate the habit of intervention from the powerful people, it would be a great help,” he said.

“I always respect the law and will always go against those who establish places that may lead to runining the reputation of neighbouring businesses.”

But it will take more than the threat of new laws to improve things, said Ros Sopheap, executive director of Gender and Development in Cambodia. Sopheap called for more details as to how authorities will tackle illicit practices in entertainment venues, especially with regards to sex workers.

“Policy-makers just want to improve the reputation of the country,” she said. “But more laws are not necessarily the answer. Policy- and lawmakers need to consider the effect these laws will have on the lives of women in sex industry, and more widely the reasons women are forced into sex work in the first place.”

http://www.phnompenhpost.com/business/adult-venues-be-targeted