Paradise Entertainment’s board split signals expansion into ‘green’ sectors outside gaming

In order to expand outside gaming, Paradise Entertainment Ltd. separated the position of board chair inside the company. Beginning in December of last year, this change in emphasis highlighted a trend toward “green” industry sectors. The Hong Kong-listed firm has a history of operating Macau’s satellite casinos and producing gaming equipment for casinos under a service arrangement with SJM Holdings Ltd.

The whole Macau region is attempting to diversify away from its monopolistic casino industry, and Paradise Entertainment is doing the same. Zhang Jianjun, the company’s co-chairman, has 25 years of experience in industries including investment banking and asset restructuring and is a specialist in green initiatives like “smart charging” for EVs in mainland China.

The danger of overcharging is decreased by smart charging technology, which detects when a vehicle’s battery has reached its full capacity. Despite the fact that this market is competitive, it has a lot of demand potential. Both categories entail the investigation of information and technology components that are consistent with the company’s goals, although not directly tied to the gaming industry.

The introduction of Paradise Entertainment into the Chinese smart-charging industry for electric vehicles is regarded as a means to diversify revenue sources and maybe improve financial performance. With a slow but steady rebound in the Macau gambling sector, the firm generated first-half revenue mostly from its gaming management operation at Casino Kam Pek Paradise.

Due to new government regulations, the future of Macau’s satellite casino industry is still unclear. Satellite operations are changing to a management-company model, therefore it will no longer be possible for these businesses to previously split profits with a casino licensee. The management company’s service price is still hard to define, and every service contract must be approved by the chief executive of Macau.

The modifications to the satellite casino concept may result in job losses and other difficulties in the labor market, which would harm Macau as a whole. In light of the shifting regulatory environment, Paradise Entertainment is requesting further government advice on how to structure the service charge for management businesses.

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Original story by: GGRAsia