RGB International Bhd, a Malaysian gaming product distributor, has recently clinched a significant contract with the Philippine Amusement and Gaming Corporation (PAGCOR). The contract involves supplying nearly 2,000 slot machines for use in Casino Filipino branches.
Contract Details:
RGB International’s subsidiary, RGB (Macau) Limited, received the Notice of Award from PAGCOR on May 29th. The contract encompasses the procurement and delivery of 1,968 electronic gaming machines (EGMs), alongside related accessories, LED signage, and displays.
Value of the Contract:
The total value of the contract stands at an impressive $81.3 million. Apart from supplying the EGMs, RGB will handle logistics, installation, and provide engineering technical and product training services.
EGM Suppliers:
The 1,968 EGMs comprise units from various renowned brands. Among these, 888 units each are sourced from Aristocrat and Light & Wonder, with 150 units from Konami and the remaining 42 from the South Korean brand KL Saberi.
Impact on RGB’s Finances:
RGB foresees a positive contribution to its earnings and net assets per share for the financial year ending December 31, 2024, through this project.
PAGCOR’s Strategy:
PAGCOR’s decision to replace approximately 3,000 EGMs at its self-operated casinos aligns with its broader strategy of refreshing properties ahead of planned privatization. By 2028, PAGCOR aims to transition into a pure regulatory body.
Business Expansion and Market Penetration:
RGB’s successful bid for the PAGCOR contract signifies its growing presence in the international gaming market. Securing such a substantial deal not only enhances its revenue streams but also solidifies its position as a leading supplier in the region.
Diversification of Revenue Streams:
By collaborating with various EGM brands, RGB demonstrates a strategic approach towards diversification. This not only mitigates risks associated with dependence on a single supplier but also allows RGB to cater to diverse preferences of casino operators.
Financial Growth and Stakeholder Confidence:
The projected positive impact on RGB’s financial performance instills confidence among investors and shareholders. The anticipated increase in earnings and net assets per share reflects the company’s ability to execute lucrative contracts and capitalize on emerging market opportunities.
PAGCOR’s Modernization Efforts:
PAGCOR’s initiative to modernize its casino facilities underscores its commitment to enhancing customer experience and staying competitive in the gaming industry. The incorporation of state-of-the-art EGMs aligns with evolving consumer preferences and technological advancements.
Transition towards Regulation:
PAGCOR’s long-term vision to transition into a regulatory entity by 2028 indicates a shift in its operational focus. This strategic move allows PAGCOR to streamline its functions, promote industry transparency, and foster a more conducive regulatory environment.
RGB International’s contract with PAGCOR marks a significant milestone in its journey towards market expansion and financial growth. The deal not only bolsters RGB’s position as a key player in the gaming industry but also highlights the evolving landscape of regulatory frameworks and modernization efforts within the sector. As both parties embark on this collaboration, the stage is set for mutual success and advancement in the realm of electronic gaming.