Silver Heritage Ltd of Hong Kong is planning to operate casino resorts in four locations along Nepal-India border including Bhairahawa.
The company is seeking to raise up to US$ 120 million, exclusive of fees, via a listing on the Australian Stock Exchange (ASX), probably in March, according to a news report published in GGRAsia.Com – a news portal focused on Asian gaming industry.
“The Nepal casino market and the Sri Lanka gaming market are both focusing on attracting Indian players. It is not a China story in the manner of casino resorts in places like South Korea. We feel that by seeking to invest in Nepal, we have picked the right market,” the portal quoted Tim Shepherd, executive director of Silver Heritage Ltd, as saying.
Silver Heritage will promote the gaming resorts under the brand ‘Tiger Palace’. The first Tiger Palace will open in Bhairahawa which is situated only a few kilometers from the Indian border. It will have 300 rooms built over two phases, and will include conference facilities, restaurants, family entertainment and activity centers, wedding venues and a casino, according to the portal.
Silver Heritage expects to operate more than 500 table games and 2,000 electronic gaming machines at four Tiger Palace locations by 2018. Each location will have hundreds of hotel rooms featuring meeting, conference, wedding and entertainment facilities.
“The first one (Tiger Palace Bhairahawa) is fully funded and has a $25 million capital expenditure. It’s very simple [in layout], with 100 rooms, three villas and swimming pools. We will be looking initially to operate 50 tables and 250 slots per resort,” Shepherd said in the portal, adding, “We have about 8 hectares of land that we bought at different locations. The footprint of the first resort is probably about 3.5 hectares.”
Saying that the Indian middle class was currently underserved within India for all kinds of entertainment, he said: “Of the 400 million Indians who live along the 1,500-kilometer border India shares with Nepal, maybe 10 percent of them have true disposable income. That’s from official figures. Unofficially, who knows?”
“Indians are travelling vast distances for entertainment. There is a rising middle class. We previously ran a small border operation in Nepal with three tables and about 30 or 40 slot machines. The tables did about $500 per day, and the slot machines were probably $80 to US$90 each per day. People drove from Delhi to get to this small place,” he added.
Another positive factor, according to Shepherd, is that the border opens round the clock seven days a week.
CASINO RE-OPENS IN SHANGRI-LA
Silver Heritage has received go ahead to operate a casino on the premises of Hotel Shangri-La, Kathmandu.
Happy World, a sister company of Silver Heritage, will operate the casino.
The Department of Tourism (DoT) gave final approval to the company to operate casino after inspecting infrastructures at the proposed venue.
Happy World has signed lease agreement with Hotel Shangri-La to operate casino in its premises.
Officials of Happy World said the casino will operate round the clock from Tuesday itself.
The casino is the first to receive license from the Department of Tourism (DoT) after the introduction of Casino Regulations about one and half years ago.