Drug producer seals deal to supply betting machines to Greek Mythology
LifeTec Group, a Hong Kong-listed drugmaker, expects its new gambling-related business to account for 90 per cent of the company's earnings in five years.
The company made the forecast after reaching an agreement with Macau's New Century Hotel Greek Mythology Casino, which operates under the Sociedade de Jogos de Macau (SJM) licence, to provide up to 300 live baccarat betting system terminals to the casino over five years.
LifeTec, which posted a net loss of $24 million last year, expects the project to generate at least $200 million in revenue each year. It also plans to expand its gambling-related business to other casinos.
Under the agreement, LifeTec will take up to 24 per cent of the profit of Greek Mythology's baccarat betting segment, the Macau government 40 per cent, SJM 29 per cent and Greek Mythology the remaining 7 per cent.
In return, LifeTec will be responsible for installing and maintaining the machines and for staff costs.
It costs $100,000 to install a machine, according to Philip Poon, senior vice-president and company secretary.