Entertainment Gaming Asia to venture into social casino

Pan-Asia focused Entertainment Gaming Asia is looking to develop an online social casino platform to offset its short-term revenue losses, the company said in a filing on Friday.

EGA, which leases electronic gaming machines to casinos in Cambodia and the Philippines recently reported a decline in revenue for the second quarter of 2016 – at $2.3 million, down 53.7 percent from $4.9 million a year earlier.

Net loss for the company in the quarter was $799,000, down from $1.4 million in 2015.

According to the filing, lower takes on its EGMs under a revised lease agreement with NagaWorld were the main reasons for the drop.

EGA chairman and CEO Clarence Chung said the company’s efforts to develop a social gaming platform were progressing, and the firm plans to start product testing in 16Q3.

“We have developed this free-to-play, mobile, social games app for the pan-Asian market and intend to monetise it through the in-game-sale of virtual coins that allow players to extend play time or accelerate their progress,” he said.