We start the day with news that Suncity Group is cutting costs at its flagship Hoiana resort in Vietnam to ride out the pandemic storm. This, however, does not mean that the firm’s appetite for expansion has been sated. We then have a pair of stories from Macau. In the first, we examine the liability of Macau casino operators for junket’s cash-deposit taking, following an article by expert António Lobo Vilela. Next, we review the 2020 annual results of Success Universe, specifically its flagship Macau property Ponte 16. Finally, we have a guest feature from Shaun McCamley, founder and managing partner of Euro Pacific Asia Consulting, who takes us through the world of social casinos.
First, the news
- Suncity cutting costs at Hoiana, seeks expansion ops.
- Dore ruling could change face of VIP gaming in Macau: Vilela
- Ponte 16 hit with US$31.6 million EBITDA loss in 2020
- G2E Asia to host online conference in May
- GGAM sues Bloomberry’s Razon in New York court
- Universal Entertainment cancels Manila land sale
- Moe Murakami to lead Oshidori’s CSR efforts in Nagasaki
- Lee Sam-Geol assumes post as Kangwon Land CEO
- Jeju Dream Tower violated store size regulations
- Nazara Technologies stock jumps 80% in market debut
What you need to know
Suncity Group Holdings says it’s putting cost-cutting initiatives in place to enable its flagship Hoiana resort in Vietnam to ride out the pandemic storm and continues to explore international opportunities. Suncity reported that it returned to profit for 2020, despite a 67.4 percent drop in revenue, due to an increase in the fair value of derivative instruments and convertible bonds. The company had a profit attributable to shareholders of RMB786.4 million ($119.7 million) compared with a loss of RMB1.48 billion a year earlier.
The final court ruling on Wynn Macau’s liability in the Dore Entertainment case could change the landscape of VIP gaming in Macau, according to gaming expert António Lobo Vilela. Vilela’s latest entry in the Gaming Law Review examines the liability of Macau casino operators for activities rendered inside casinos by gaming promoters (junkets), more specifically, the practice of cash-deposit taking.
Hong Kong-listed Success Universe recorded hefty losses for the year 2020, mainly due to the Covid pandemic, including an adjusted EBITDA loss of HK$243 million (US$31.6 million) at Ponte 16, the group’s flagship investment project. In regard to Ponte 16, the firm explained that although casino operations were able to resume on a limited basis on February 20, 2020, “certain Covid-19 precautionary measures such as limiting the number of gaming tables allowed to operate and the number of seats available per table, slot machine spacing, temperature checks, compulsory wearing of mask and health declaration have remained in effect.”
With continued and future disruptions on land-based casino revenues, industry executives are asking whether online casino platforms, which have seen rapid growth rates, can play a role in assisting stalled revenue lines and help them move beyond these difficult times.
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