The Hong Kong-based Success Dragon International Holdings has proposed to desist offering electronic gaming machine (EGM) management service to Macau’s casinos due to its unsatisfactory performance, according to the group’s release published on April 30.
During the six months ended September 30 2020, the group suffered a sharp plunge of 57.7% year-on-year in revenue generated from the outsourced business process management for electronic gaming machines in Macau, to just HKD17.8 million.
Such a fall pushed its share of the group’s total revenue from 94.9% during the same period last year to 35.2% currently. The result was interpreted by the conglomerate as a “less than satisfactory performance.”
“The decrease was mainly attributable to intense competition in the Macau gaming market faced by the group. The market competition was further worsened by the outbreak of Covid-19 pandemic,” the group said in the statement.
The off-putting figures dissuaded the group’s board of directors from renewing the two contracts regarding the provision of EGM service to the Macau casinos — which is slated to expire on April 30 2021 and May 31 2021, respectively.
“The company will cease to operate the Outsourced Business Process Management in the coming month [June],” the conglomerate stated in the release.
According to the group’s official website, it is now offering the outsourced business process management service — the provision of operational and technical support to casino operators to help them better manage their electronic gaming machine operations — to two casinos in Macau: Casino Casa Real and Casino Grandview.