A deal between south-east Asia casino operator Donaco International and Macau VIP gaming promoter Heng Sheng Group announced last week could produce as much as US$29m per year in additional gross gaming revenue at Cambodia’s Star Vegas Resort and Club.
As part of the deal with Australia-listed Donaco, Heng Sheng has committed to a guaranteed minimum rolling chip volume of THBbn (US$84.4m) per month, or approximately US$1bn per year.
“Using the industry-wide standard VIP win rate of 2.85 per cent, this results in incremental annual VIP GGR of US$29m,” wrote Union Gaming analyst Grant Govertsen.
“Given the favourable tax regime in Cambodia, we believe EBITDA margins for Donaco are likely in the 15 to 20 per cent range even after paying Heng Sheng an outsized share of economics relative to typical Macau junket economics,” added Govertsen.
