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Supplying an estimated 46% of the gaming machines installed in Asia it seems that things can only get better for Dreamgate Corporation Bhd, a company listed on the MESDAQ market of Bursa Malaysia. It is involved in various aspects of technology, manufacturing, technical support and management of gaming and amusement machines, provision of technical services to gaming establishments, clubs and resorts in gaming and amusement equipment and machinery.
The company has a strong track record in the region and can offer total solution services and a wide variety of slot machines. Amongst clients are PAGCORP of the Philippines, SJM of Macau and Resorts World of Malaysia.
The expanding gaming market in Asia should ensure that Dreamgate stocks remain strong. Demand in Macau is expected to increase ten-fold, PAGCORP is planning to develop two giant casino hotel complexes on a Tourism Estate, and Resorts World is upping its room capacity and its Star Cruise vessels with potential to increase slot machine numbers by around 2,200. Add to this the more moderate expansion of casinos in Cambodia, Vietnam, Laos and Myanmar then the slot machine market could double within a couple of years.
At the moment 80% of Dreamgate's revenue comes from sales and marketing, 19% is from technical support services and management. This latter division of the company is set to grow as Dreamgate is contracting with more casinos in the area to own, supply and manage the slot machines.
If gaming in the Asian region is further liberalized, and Singapore and Thailand develop gaming industries, then further growth for the company is on the cards. Gaining exclusive contracts with casinos and existing suppliers is helping Dreamgate to ward off foreign competition. Analysts are recommending the stocks, foreseeing a growing and stable income for the company.
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