Macau Legend obtains online casino and licenses in Cape Verde
Casino services company Macau Legend Development Ltd has announced that it has signed several agreements with the government of the island nation of Cape Verde to develop a casino complex (shown in a render) in the South African country. ‘Where is. The company plans to invest around 250 million euros ($ 273.6 million) in the casino program, she confirmed in a filing on Wednesday.
The company said it intended to finance the development with “internal resources, bank financing and / or external debt / equity financing.”
The project – which will include luxury hotels, a casino, a convention center and a marina – would be located on 152,700 square meters (1.6 million square feet) of land in Praia, the capital of Cape Verde, on the island of Santiago. .
David Chow Kam Fai, Co-Chairman and Managing Director of Macau Legend, acts as Cape Verde’s Honorary Consul in Macau. The agreements between Macau Legend and the Cape Verdean authorities were finalized on Wednesday during a visit to Macao by Leonesa Fortes, the country’s Minister of Tourism, Investments and Business Development.
Macau Legend plans to start construction within 12 months, he said. Once construction begins, the project is expected to be completed within three years, Chow said on Wednesday.
“We will start very quickly, depending on the licenses and approvals needed,” Chow told reporters. He said there were no numbers yet on how many gaming tables the casino would have.
The project will be developed through Macau Legend subsidiaries in Cape Verde.
Macau Legend said the government of Cape Verde granted a 25-year gaming concession to one of Macau Legend’s subsidiaries, CV Entertainment Co. The company paid a one-time premium of around HKD 10.1 million ($ 1.3 million) for the gaming concession. During the first 15 years of the concession, the Cape Verdean unit will have exclusive rights to operate a casino on the island of Santiago.
Cape Verde wishes to develop its tourism industry and has developed policies for the creation of a gambling and casino industry. Three areas dedicated to casino projects were announced in 2012, respectively on the islands of SÃ£o Vicente, Santiago and Sal. In 2013, two more play zones were announced for the islands of Boa Vista and Maio.
In April 2013, a gambling concession was granted by the government to Royal Casino, for a casino to be operated on the island of Sal, according to reports from banks and local media.
Speaking to reporters on Wednesday, Fortes said the Macau Legend project would have a “significant impact” on Cape Verde’s economy, helping to increase the number of tourists to the country. She added that her country hopes to attract 1 million visitors per year – especially Chinese tourists – after the completion of the Macau Legend project.
A report by the World Travel and Tourism Council said it expected Cape Verde’s travel and tourism industry to grow 7% year-on-year in 2015 to reach 497,000 visitors. The Council added that the industry contributed directly to 15 percent of Cape Verde’s gross domestic product in 2014.
In Wednesday’s filing, Macau Legend said its Cape Verdean unit had also been granted “an exclusive national online gaming, physical and online sports betting operation”, for a period of 10 years from the start of the season. operations.
Under the agreements now announced, CV Entertainment Co must pay a gaming tax of 10 percent of its gross gaming revenue. The company will, however, be entitled – during the first five years of operation – to a 25% deduction of the gambling tax in connection with the games of chance of VIP customers in the casino, the parent company said.
The Cape Verdean operation of Macau Legend will also be exempt from income tax and property tax for the first 10 years of its casino operation, but it will have to pay up to 1% of its net gaming profits for the game. promotion, development and research of cultural and social activities in Cape Verde.
It will also contribute around HKD 1.2 million annually – as of July 2017 – “to the operational expenses of the Cape Verde gaming office,” he added.
Macau Legend said in its latest filing that this group scale and over the long term it expects to increase its revenues “by geographically diversifying the group’s business and expanding into a new casino market.”
Macau Legend, listed in Hong Kong, operates two casinos in Macau: Babylon Casino in Macau Fisherman’s Wharf; and Pharaoh’s Palace Casino at the Landmark Hotel, both on the Macau Peninsula. The company last week reported a loss likely for the first half of the year.