While these combined efforts are not expected to minimize the normal fluctuation in quarterly sales flow of this business segment, the Company anticipates they will drive meaningful long-term improvement in revenue and gross profit for these operations.
Dreamworld Pailin Ramping Up
In May 2012, the Company opened the mass market floor of its first casino development project, Dreamworld Pailin. Dreamworld Pailin is located at the Cambodia-Thailand border on a growing trade route connecting the two countries. This was a milestone event as it marked the Company’s first casino opening in Indo-China and begins a new phase in its growth strategy.
The mass market floor currently includes 26 popular table games such as baccarat and dice games and an attractive suite of 50 slot machines. Dreamworld Pailin also has two VIP rooms with a total of four tables which are not yet open. These operations are still in their infancy as the Company expedited the opening date in the second quarter of 2012 to fast-track operation of the casino’s mass market floor and establish its presence in the local market.
Given the early stage of the operations and the fact that the casino is not yet fully operational, results are not normalized. The Company is working on a number of marketing initiatives to continue to ramp up the operations.
Dreamworld Poipet Update
The Company’s next development project is Dreamworld Poipet, a stand-alone slot hall in an existing popular casino in Poipet at the Cambodia-Thailand border. Poipet is an established gaming market and one of the most significant border crossings between Cambodia and Thailand. It is located approximately 1.5 hours by car from the Pailin Province of Cambodia.
This $7.5 million project will be constructed as a stand-alone extension of an existing casino owned by a local Cambodian company and will connect to the main casino’s table game floor. Dreamworld Poipet will operate under the casino owner’s gaming license. It is expected to house 300 EGM seats, which will include multi-player electronic tables and live dealers to provide players the full casino experience. The Company and casino owner will share the daily net win generated by the EGMs in the Company’s slot hall and certain operating costs on a 40%/60% respective basis.