New Silkroad Cuts Losses, Sells Stake in Jeju Casino

To address ongoing losses in the entertainment sector, New Silkroad Culturaltainment Limited sold its majority stake in the MegaLuck casino on Jeju Island, South Korea, for a sum of $3.6 million.

The Hong Kong-listed company gave current investor Yu Cheng Kuo a 72% share in Megaluck Business Limited. The approximately $3.3 million in profits will be utilized to improve the cash flow of the business.

In recent years, New Silkroad has experienced considerable losses in entertainment revenue, which it attributes to the difficult global economic environment that impacts travel. The company wishes to refocus its efforts on endeavors that yield higher profits.

In order to create a more stable financial future, New Silkroad is undertaking a significant restructuring effort with this acquisition.

Original Story by: Asian Gaming Brief