Frequently Asked Questions


What is Silver Heritage’s business?

The Group’s business is divided into two core business lines:

  • Operation of casinos – The Group operates The Millionaire’s Club & Casino in Kathmandu, Nepal (“TMC”), under its own licence, and provides management services to The Phoenix International Club casino in Bac Ninh, Vietnam (the “Phoenix International Club”). The Group is building a five-star casino resort, Tiger Palace Resort Bhairahawa and is in the planning stages to build a second five-star casino resort, Tiger Palace Resort Jhapa, both in Nepal near the border with India; and

  • Provision and operation of EGMs – The Group provides EGMs to casinos and licensed gaming clubs in Laos and Cambodia. These are typically structured as revenue sharing arrangements and represent some of
    the Group’s longest standing relationships. It has provided EGMs in Laos 
    since 2004 and Cambodia since 2005. The EGMs business has provided strong strategic experience and relationships while the Group built its broad knowledge in new markets. With its now established position in those markets, Management expects this part of the business will be less important to the Group’s future growth strategy. 

What is Silver Heritage’s growth strategy?

When the Group commenced operations in 2004, it was initially engaged in the supply and management of EGMs. Since then, Silver Heritage has used its experience and track record in rapidly developing Asian gaming markets to transition its business strategy to focus on management and operation of casinos, which allows the Group greater operational control, as well as a larger relative share of revenue generated by the EGMs and from the live gaming tables.

The Group’s core growth strategy going forward is increasingly to focus on developing casino resorts on the India-Nepal border where it considers there to be strong demand from Indian gaming customers. It is currently developing Tiger Palace Resort Bhairahawa, which is scheduled to commence operations in early 2017, and has identified further development opportunities along the same border.

Management also believes that Vietnam represents a key growth prospect and will, subject to obtaining appropriate funding, consider opportunities to acquire an equity interest in an existing or future licence holder within Vietnam, with a view to directly owning or operating casino or other gaming facilities. 

How does Silver Heritage generate its revenue?

Silver Heritage generates:

  • gross gaming revenue (“GGR”) through the operation of TMC;

  • a services fee calculated as a percentage of GGR generated at The Phoenix International Club for the provision of management services at the casino; and 

  • a revenue sharing fee for the provision of technical support and maintenance services and EGMs to casinos and gaming clubs in Laos and Cambodia. 

What are the key strengths of the Group’s business?

The Company believes that the Group’s key strengths include the following:

  • Established early mover advantage in key emerging gaming markets – The Group has positioned itself over a number of years to establish first or early mover advantage in its key markets, which have strong demand for gaming facilities and little available supply. Its operations in Nepal and Vietnam are intended to provide ready access to the growing and relatively unsatisfied gaming demand from India, as well as Chinese, Taiwanese, Japanese, and Korean expatriates in Vietnam, respectively. In particular, in Nepal, the Group is well positioned as the first entity to be granted a licence under the new casino regulations adopted in 2013 to develop its new properties near the India-Nepal border, with significant local knowledge and relationships.
  • Highly experienced management team and proven track record in key markets – The Group’s management team has a proven track record of identifying market opportunities and developing gaming operations. Each member of the Senior Management team has more than fifteen years’ experience operating in Asian gaming markets. Key members of Management have overseen the Group’s transition from the provision and ongoing technical support and maintenance of EGMs under revenue sharing arrangements to actual operators and managers of casinos and have been able to observe, and participate in, the development of the regulatory landscape in a number of newly developing gaming markets.In addition, the Group has strengthened its management team to provide support in both casino operations and resort development and operation. Management believes that this deep understanding of the market, coupled with established key relationships with regulators, relevant government ministries and other stakeholders, represents a competitive advantage for the Group.
  • Dynamic business model, which allows scalable growth and management of risk – The Group has been able to grow its business successfully in a number of gaming markets through a dynamic business model which allows for the management of risk in the early stages of the development of the regulatory landscape. It has achieved this by initially adopting a conservative approach, entering markets through the provision of EGMs to third party gaming facilities, while the Group develops the local knowledge required to be successful in these markets.Over time, in those markets that the Group has determined to be most suitable, namely Nepal and Vietnam, it has now assumed greater exposure and achieved higher returns on invested capital by directly owning or managing casinos.
  • Strong domestic partners in key markets – In certain key markets, the Group has entered into arrangements with local partners, either due to foreign ownership restrictions, or where Management believes that their growth objectives are best met through such an arrangement where local knowledge and expertise can be leveraged to the Group’s advantage. To date, its partners have added value to the Group’s presence in their markets, and the Group believes these strong relationships represent a key competitive advantage.

What is the Company’s Dividend policy?

The Board has no current intention to declare and pay a dividend in the near term and has set no targets for a dividend payout ratio. While the Group continues to develop new casino resorts, it expects to re-invest cashflow generated internally. 

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