Macau (MNA) – The reinvention of local junket operator and casino investor Suncity as a casino principal provides a ‘positive new angle for Suncity as it relates to the potential for obtaining a Macau licence,’ deduced research released by advisory firm Union Gaming on Monday.
The report opines that the Suncity Hoiana project in Vietnam puts the company in a better position to win a licence in Macau, if issued, ‘not only because Suncity will be a bonafide IR operator with local roots, but that licensing Suncity would also repatriate VIP dollars to Macau’.
Meanwhile, the report raises concerns about the risks the move poses to Macau. Union Gaming research believes ‘Suncity will be in position to redirect a real amount of VIP to Vietnam . . . [that] . . . could have a several hundred basis point impact upon Macau VIP beginning later in 2019.’
Suncity acquired a 34 per cent stake in Hoiana integrated resort in Vietnam for HK$600 million. Apart from this direct interest, Suncity will generate income from pre-opening consulting and a ‘10-year management agreement to run the gaming and F&B portions of the IR’.
According to the structure of revenue options, the report estimates that Suncity could have an estimated annual management fee income of HK$369 million if the property posts HK$39 billion in monthly rolling chip volume.
