Rich Goldman ceases contract with last remaining junket partner due to Covid-19

Junket group Rich Goldman announced that it has terminated a contract with its last remaining junket partner Hoi Long Sociedade Unipessoal Limitada, which operates eight VIP tables in the Grand Lisboa casino.

According to a filing submitted to the Hong Kong Stock Exchange, the company revealed that it was notified by Hoi Long that in light of the challenging economic conditions caused by the Covid-19 outbreak it has decided not to seek an extension of its collaboration contract with SJM Holdings, which will expire from April 2020.

Rich Goldman stated it would use all ‘reasonable endeavours’ to identify new junket operators for its gaming business and that if it is unable to identify any new junket operators it will cease to have an income stream from its gaming business.

According to the company’s last financial report, Rich Goldman generated HK$18.4 million (US$2.3 million) from its gaming and entertainment businesses.

‘The Group will focus its resources on other principal businesses in the meantime, particularly its money lending business, so as to maximize the return for the Shareholders. […] It is the Group’s intention to keep developing the money lending business as well as the hotel operations business,’ the filing signed by the company’s chairman Andy Lin Chuen Chow indicates.

In February the group granted an HK$200 million loan for a term of one year at the interest rate of 5.25 per cent per annum to an investment holding named Dragon Joy Development Limited.