KUALA LUMPUR (June 3): RGB International Bhd (KL:RGB) has secured a vendor licence from the United Arab Emirates that allows it to sell electronic gaming machines.

The application submitted about a year ago has been recently approved by the Emirates’ authorities, according to RGB International executive director Ganaser Kaliappen. The company has also paid processing fees of around RM10,000 ahead of the issuance of the formal licence, he noted.

“This effectively enables us to operate as an approved vendor for the supply of machines, as well as related services and maintenance in the region," he said at RGB International’s earnings briefing on Wednesday.

The development is significant for RGB International, putting the company in an early position ahead of the expected rollout of the Emirates’ first legal casino located at the Wynn Al Marjan Island in 2027.

The country’s first commercial gaming licence was awarded to the Las Vegas-based Wynn Resorts by the General Commercial Gaming Regulatory Authority that regulates, licenses and supervises all commercial gaming activities and facilities in the emirates.

“While operations are still some time away, it puts us in a good position to build relationships and explore future business opportunities, whether in machines, services or related offerings,” Ganaser said.

RGB International is a total solutions provider of electronic gaming and amusement machines, with distribution across Malaysia, Cambodia, Laos, Vietnam, Singapore, Macau and the Philippines. 

This year, the target is to sell around 3,000 units and the company has secured about 2,000 orders to date, including 500 machines sold in the first quarter. Last year, the company only delivered 1,924 electronic gaming machines, short of its own target.

If geopolitical tensions in the Middle East, as well as between Cambodia and Thailand improve, RGB International expects sales to reach around 3,500 to 3,800 machines for the year, said its chief operating officer for leisure Chuah Eng Meng.

 “We are seeing demand from the Philippines and are also in discussions with Vietnam,” he said. “We are also seeing demand from Cambodia, where casinos are looking to lease machines from us, although we are not looking to open new outlets at this point.”

Industry-wide, about 8% to 12% of installed gaming machines are replaced annually, Chuah noted.

The Philippines accounts for the largest share of such demand, with an installed base of around 24,000 machines, translating into roughly 1,440 replacements annually.

Malaysia, meanwhile, has about 8,000 machines and requires an estimated 480 replacements, while Cambodia’s 6,000-machine base yields about 360 replacements a year.