Also investing in Vietnam
In a further sign of its expanding business interests, Macau junket operator Suncity Group Holdings Ltd. has announced that it will partner with Golden Sun Sky Entertainment Group Ltd. to develop and operate a $360 million casino in the Cambodian province of Sihanoukville.
On October 1, Suncity informed the Hong Kong Stock Exchange that a subsidiary, Macau-based Suncity Group Management and Consultancy (Sihanoukville) Ltd. and resort owner Golden Sun Sky had finalized the agreement at the end of September. SGMC (Sihanoukville) will provide pre-opening and technical services for the casino and its parent will manage the casino for 20 years.
The 650,000-square-foot casino resort will be located at Otres Beach in Sihanoukville and open in early 2020. Sihanoukville, on the southwestern coast of Cambodia, has seen a surge in tourism by the Mainland Chinese in the past few years, making growth in the gaming industry a natural result.
Golden Sun Sky is a relatively new player in the industry, established in March 2017 as part of the mainland investment group China Yunnan Jingcheng Group Co. Ltd.
SGMC (Sihanoukville) will be paid US$500,000 initially for 12 months of technical support and US$41,667 a month thereafter as long as the consulting arrangement continues. For running the casino, SGMC will get 3 percent of gross gaming revenues per month and 5 percent or 6 percent of the annual earnings of the casino from gaming.
Suncity is taking giant steps to grow beyond its role as a junket operator, especially with its investment in the $4 billion Hoiana casino resort in Vietnam. It also aspires to be part of some consortium building an integrated resort in Japan, and could even position itself for a Macau casino concession in the next few years.
