The casino opened with suitable fanfare just over three years ago. Today a statement issued by Ho Wah Genting Bhd (HWGB) announces that its 60% owned subsidiary Ho Wah Genting Casino Resorts Co Ltd (HWG Casino) yesterday ceased operations at the casino hotel in Poipet, Cambodia due to lack of patronage. For the last two years HWG Casino, with 100 table games, has been a loss-making operation supported by cash flow from its holding company.

In 2003 Poipet was described as the biggest gambling centre in Asia outside Macau. The city is a 4-hour drive from Bangkok and many Thais cross the border to gamble at one of the casinos. The Far Eastern Economic Revue of November that year said, “On one side of the immigration and customs barrier, there is poverty and chaos… The only buildings are rundown shophouses and makeshift food stalls. On the other side: Glitzy, air-conditioned hotels, duty-free shops, massage parlours, an 18-hole golf course, manicured lawns and beer gardens with quick and efficient service. And, above all, casinos. “

Competition from other casinos in the Poipet region has been blamed in part for the lack of customers. In 2005 HWG Casino seemed to back on track following losses caused by the bird flu epidemic in Asia. At the 26 May 2005 AGM, HWGB reported that its Cambodian casino operation would become the group’s main earnings driver but just 17 months later HWGB has admitted defeat and is withdrawing from the country.

The closing of the casino will leave 7 operations open in Poipet. Most of the money to build these casinos has come from investors in Thailand, but cash has also come from Malaysia, Indonesia, Taiwan and China. One Malaysian investor, HWGB, is cutting its losses. (E-10.17.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage