Australia-based gaming and leisure company Donaco International Ltd. said that the newly launched VIP gaming room at the Star Vegas Resort & Club in Poipet, Cambodia generated revenue of a little less than $700,000 in its first full month of operation.
Donaco Managing Director Joey Lim said at the company’s annual general meeting that during its first full month, the VIP room completely met their expectations. The room was launched on September 20 and is run by Macau-based VIP gambling promoter Heng Sheng Group.
Donaco announced that it would acquire Star Vegas in January. The transaction cost the gambling operator the amount of $360 million and was completed on July 1. The Australian company expressed hopes that it would increase the number of VIP players from the Asia-Pacific region by signing a three-year agreement with Hang Sheng Group. The Macau-based promoter was hired to attract more high rollers.
Mr. Lim explained that during the four months since Donaco took over the Poipet gambling venue, it saw its VIP rolling chip turnover going up 43%. Gross win rate on turnover was 3.39% in the quarter ended September 30 as compared to the figures posted for the same period a year ago.
During the third quarter of 2015, Star Vegas generated $10.5 million from VIP gambling operations, $4.4 million from its mass table games, and $7.5 million from slot machines. The casino’s EBITDA grew 29% for the period in review. Those results did not include revenue from the newly opened VIP room.
Star Vegas is a hotel and casino complex, comprising four hotels with a total of 385 rooms, and gaming floor with 109 gaming tables and 1,284 slot machines. The VIP room features 50 baccarat tables.
Mr. Lim said that few Asia- and Australia-listed casinos are able to demonstrate “such strong growth rates” in the region’s current gambling market.
Star Vegas is the biggest casino of all nine such venues in Poipet. The facility draws gambling customers from neighboring Thailand, where casino gambling is prohibited by law. Donaco’s strategy to attract more VIP players at the property comes at a time when the Australian gaming operator is pushing for more mass market customers at its Vietnam-based flagship venue Aristo International Hotel.
Mr. Lim told shareholders that Ariosto needs to reduce its dependence on high rollers coming to the property. According to the executive, when a VIP player hits a big win, they can simply take their winnings and leave the facility. Without the volume of mass market players, Aristo would not be able to win back the huge losses, Mr. Lim explained.
