Sports deal will “expedite growth” in Southeast Asia
Donaco International has signed a three-year agreement with Macau junket operator Heng Sheng to bring VIP players to its recently acquired Star Vegas property in Poipet, Cambodia. The new VIP room with up to 50 baccarat tables is expected to open in September, according to Reuters, and run for three years.
The move will expand the Star’s customer demographic beyond Thai patrons, the Australian company announced. Donaco bought the Star Vegas in July for US$360 million.
Heng Sheng has guaranteed a minimum turnover of THB3 billion (US$84 million) per month, or about US$1 billion annually. According to Union Gaming, the deal could produce as much as US$29 million per year in additional gross gaming revenue at Star Vegas.
“Using the industry-wide standard VIP win rate of 2.85 percent, this results in incremental annual VIP GGR of US$29 million,” wrote Union Gaming analyst Grant Govertsen. “Given the favorable tax regime in Cambodia, we believe EBITDA margins for Donaco are likely in the 15 percent to 20 percent range even after paying Heng Sheng.”
The Cambodian government does not tax gross revenues, but instead a flat tax that typically rises each year.
The London Daily Mail reports that Heng Sheng is among the top five junket operators by volume, with operations in in Macau, Vietnam and the United Kingdom.
In other news, Donaco has signed a deal to become Manchester United’s official resort partner in Cambodia, Laos, Myanmar, South Korea, and Thailand, where the football club has some 325 million fans, reported TheDrum.com.
Head-quartered in Australia, Donaco International operates leisure and entertainment resorts across the Asia Pacific region. Its largest property, Star Vegas Resort & Club, opened earlier this year in Cambodia and boasts more than 1400 slot machines, 100 gaming tables and 385 hotel rooms. The Company’s flagship resort is Aristo International in Vietnam.
“Through our partnership with Manchester United, we look forward to delivering compelling marketing campaigns to better engage with our customers and fans and help expedite our growth and footprint across the region,” said Donaco Managing Director Joey Lim.
