Global Net Entertainment Corporation has entered into an agreement with the Royal Group and Gamex Inc. to form a joint venture for operating lotteries in the Kingdom of Cambodia. The Royal Group, a licensed lottery operator based in Phnom Penh, Cambodia, is authorizing the exclusive perpetual to the new venture for 22 years or the life of the license, whichever is longest.
The Royal Group is made up of eleven subsidiaries, including Mobitel, Cambodia's leading wireless telecommunications company with 160,000 subscribers and over 600 retail locations. The retail locations will serve as the first distribution channel for lottery ticket sales.
Gamex, Inc., a Nevada based company, is currently designing a casino in Guinea, West Africa and is negotiating lottery and casino licenses in two southeast Asian countries and one country in Africa.
Under terms of the agreement, Global Net (Barbados) Inc., a wholly owned subsidiary of Global Net Entertainment Inc., will receive a monthly fee of $20,000 and 70 percent of net profits during the first two years of the license. For the balance of the agreement, Global will receive $25,000 a month and 62.5 percent of profits. Additionally, the company will provide $150-250,000 in startup funds.
Global is also installing 50 VLTs in Puerto Cortes, Honduras before year's end, according to Julius Csurgo, Global Net Entertainment Corporation CEO and chairman. He also announced that the online gaming subsidiary, Global Netertainment Corp. of St. Kitts is in final stages of evaluating software options for the launch of its online casino and sportsbook in early 2000.
The Global Net Entertainment deal marks the second time an Internet gaming-related company has tried its hand at the Cambodian lottery market. Liechtenstein-based Plus Lotto signed a deal to introduce its "Mega Bucks" Internet lottery to Cambodia in 1998, however, the long-distance venture was short lived.