SJM Holdings renews satellite casino deal with L’Arc Entertainment
The new agreement between SJM Holdings and L’Arc Entertainment will run until the end of 2025.
Macau.- SJM Holdings has announced that it has renewed a services agreement with L’Arc Entertainment Group. The deal authorises SJM Resorts to use the designated area of the L’Arc Hotel for the operation of a casino.
According to the company filing, the deal will be in effect for three years, until December 31 of 2025. L’Arc Entertainment will receive fixed percentages of monthly gross gaming revenue (GGR) from SJM Holdings, up to an annual cap that will be adjusted throughout the three-year period. L’Arc will bear all operational costs and expenses incurred for the operation of the casino.
The cap for 2023 is set at HKD253.1m (US$32.2m), while the cap for the 12 months to December 31, 2024, is HKD351.7m, rising to HKD450.1m for 2025. SJM Holdings said the caps consider the expected recovery of visitor arrivals and gaming revenue due to the loosening of the Covid-19 countermeasures in Macau and China.
L’Arc Entertainment Group is indirectly and wholly owned by Angela Leong On Kei. She became the sole owner of the company after acquiring all of the remaining shares in 2021. Leong is also co-chairman and an executive director of SJM Holdings and has an 8.6 per cent stake in the company, as per the 2022 interim results published in August. She is also a Macau legislator.
SJM Holdings stated that Angela Leong was absent from the board meeting when the deal was being discussed and abstained from voting on the board resolution to approve the renewed L’Arc services agreement.
See also: Macau Legend to operate satellite casinos under SJM licence
