It was announced mere hours ago that Macau-based junket operator Suncity Group joined Hong Kong property developer Chow Tai Fook Enterprises and Vietnamese investor VinaCapital and they will work together on the construction and operation of a $4-billion casino resort on the territory of Vietnam.
The property is planned to be located in Quang Nam, Vietnam. According to initial information, the project will be carried out in several phases. Phase one will include the development of golf course, casino, and hotel and will be completed towards the end of 2018 or the beginning of 2019.
The three companies are determined to build the multi-billion resort despite the fact that gambling in Vietnam is a quite controversial topic and many major operators have refrained from opening casinos there.
As previously reported, Macau posted a significant drop in revenues for the ninth consecutive month. This is why local operators have been trying to expand their operations in other Asian countries, in order to boost their businesses.
Suncity Group confirmed that it will be part of the large-scale project. VinaCapital stated that Chow Tai Fook Enterprises, too, will be involved. Yet, the real estate developer itself refused to comment on the matter and only pointed out that it is carrying out preliminary research.
Previously, Genting Malaysia Berhad was among the companies that were to take part in the establishment of the casino resort, but it dropped from the project in 2012. It pointed the restrictions on gambling that were imposed in Vietnam as the main reason for its decision. Sheldon Adelson, Chairman of Las Vegas Sands Corp., was also interested in investing in such a property, but only in case local government makes the current law less stern.
At present, residents of Vietnam are not allowed to gamble, but, reportedly, country authorities are contemplating on the possibility to change this.
If, however, Vietnamese are not given the green light to engage in gambling activities in local casinos, the venues will continue to rely on revenues from foreigners. Vietnam is located near many major Asian capitals, not to mention that Chinese high-rollers are particularly keen on being offered new gaming options, as Chinese President Xi Jinping’s anti-corruption campaign resulted in their withdrawal from Macau’s casinos.
It seems that Vietnam’s already established gambling venues have benefited from the current situation in China’s administrative region, as casino executives shared that their properties have posted an increase in revenues. This was primarily attributed to the fact that more Chinese citizens can now be found at their premises.
