Australian-listed casino operator Donaco International is navigating rough waters as its planned acquisition by On Nut Road Limited (ONR) stalls and new tax complications arise in Cambodia. The group said in a market update that its Scheme Implementation Deed (SID) with ONR has been held up due to valuation and legal review complexities.
Initially, the scheme meeting was scheduled for 3 June, with supporting documents due to reach shareholders by 6 May. However, those dates are now off the table. The to longer-than-expected timelines from third-party valuation contributors, extended legal analysis of Cambodian and Vietnamese regulatory frameworks, and public holidays in all three jurisdictions. Due to this, the Independent Expert’s report was not finalised on time. This resulted in Donaco being unable to lodge required documentation with the Australian Securities and Investments Commission (ASIC).
“The delay is through no fault of the Independent Expert,” Donaco stated. “An updated scheme timetable will be provided once the report is complete and court hearing dates are confirmed.”
Additional tax liability
Discussing Cambodian gaming tax position, Donaco said it may be liable for a significant new tax burden owing to regulatory changes in the country, where the company’s Star Vegas casino operates. Until now, Donaco has been paying a 7 percent gross gaming revenue (GGR) contribution to Cambodia’s Commercial Gambling Management Commission (CGMC).
However, a directive from the Ministry of Economy and Finance in December 2022 introduced an additional VAT obligation—10 percent of GGR—effective from January 1, 2025. The directive expanded tax obligations to include VAT, monthly and annual income tax payments on GGR for all licenced gaming operators.
These measures have been deferred by the previous administration till the end of 2024. In January 2025, however, the General Department of Taxation (GDT) confirmed that the taxes are now in effect. Donaco estimates its VAT liability for Q1 2025 could be as high as AU$666,000 ($426,246).
Quarterly figures
The operator recently announced its quarterly results, reporting a modest decline in group revenue for the quarter ending 31 March 2025. This was despite stable or improving visitation across its two Southeast Asian properties. The company, which operates DNA Star Vegas in Poipet, Cambodia and the Aristo International Hotel in Lao Cai, Vietnam, revealed mixed results across its portfolio.
At Star Vegas, to AU$ 6.2 million (€3.78 million), down from AU$ 7.17 million (€4.37 million) in the previous quarter. The property’s EBITDA also declined, registering AU$3.48 million (€2.12 million) compared to AU$4.22 million (€2.57 million) in the three months to December. The resort experienced a slight dip in daily foot traffic, averaging 928 players.
On 17 March, Hong Kong-based Argyle Street Management Limited offered to acquire all outstanding shares in the Southeast Asian casino operator through its special purpose vehicle, On Nut Road Ltd (ONR). The proposed deal values Donaco at A$55.59 million, with ONR offering A$0.045 per share. This represents a 50 percent premium on Donaco’s closing price of AUD0.030 on 14 March and a 54.10 percent premium to the 90-day volume-weighted average price.
