JKH says talks progressing smoothly with several leading international gaming operators

John Keells Holdings (JKH) revealed that negotiations with several leading international gaming operators are progressing smoothly to commence gaming operations at its flagship Cinnamon Life Integrated Resort.
Subsequent to formalising the process of issuing licences and monitoring of casino operations in Sri Lanka in August last year, JKH commenced discussions with several leading international gaming operators to secure the necessary international gaming expertise to operate at its Cinnamon Life Integrated Resort.
“A lot of groundwork has been carried out by the parties, including detailed site visits, evaluation of the business case and operating model, fit-out requirements, designs and timelines. The discussions are progressing well, where various commercial structures and arrangements are being negotiated,” JKH Chairman Krishan Balendra told shareholders in the firm’s latest annual report.
Under the envisaged model of gaming operations, JKH plans to lease 150,000 sq. ft. space to a gaming entity, while a third party is expected to invest in the gaming fit-out.
“Based on discussions, it is estimated that the overall fit-out of the gaming space will take a period of approximately 12-15 months, once the commercial aspects and agreements are finalised,” Balendra added.

In the event Cinnamon Life Integrated Resort fails to obtain favourable terms, he noted that they have come up with an alternative model to commence gaming operations.
“… as an alternative, we will work on a model where the gaming entity sources the requisite international gaming expertise to operate at Cinnamon Life Integrated Resort, similar to how some other successful regional integrated resorts have established operations,” Balendra said.
Although arrangements have not been finalised pending clarity on the gaming operator and related strategy, JKH noted that the  development of the hotel Cinnamon Life Colombo and retail and entertainment components are progressing well with the fit-outs and interior decorating of the hotel rooms and common areas well underway with around 500 rooms already completed. 
JKH is also considering various alternatives, including experiential offerings focused on food and beverages, lifestyle and entertainment, which would complement the hotel and gaming operations for the retail space.
Cinnamon Life Integrated Resort is scheduled to be operational in the third quarter of 2024/25 financial year.
“We are confident that the convergence of all elements in the launch of the integrated resort will unlock its full potential as a transformative development in South Asia and be a catalyst in creating tourism demand and foreign exchange earnings for Sri Lanka,” Balendra said.