Suncity Ltd. forms consortium in Japan for lR licence bid

Famous Macau junket Suncity Group Holdings Limited, is about to get in on the gambling action in Japan.

It has formed an consortium with several Japanese companies that will study the possibility of applying for one of the few casino licenses to be issued by the country. The new information came from the company’s executive director, Andrew Lo, by way of an interview at G2E Asia.

Andrew Lo further declared that the size of the investment will be predicated on the location of the resort, as well as the final design of the casino legislation.

He stated during the interview with Asia Gaming Brief, “We are just beginning. We are willing to spend some expenses, form a consortium and hire a few guys to try to understand more because the rules and policies aren’t that ready yet.

“A committee asked me what am I going to invest. I said if you give me a big plot of land in front of the palace I’m going to invest $50 billion, if they give me a remote island I may consider $500 million,” added Andrew Ho.

The final touches are currently being added to Japan’s Integrated Resort (IR) Implementation Bill. Legislators are addressing how the industry should be governed and responding to concerns that have been raised over some of the bill’s amendments. Questions regarding license renewal periods and procedures, a 3% cap on the casino floor size and high tax rates are some of the issues that still need to be ironed out before the legislation is approved.

Several casino operators have mentioned that they are prepared to pay just about anything to gain a foothold on the Japanese casino market; however, Lo is taking a more pragmatic approach. He indicated that a tax rate set too high could be a deal-breaker, leading him to consider investments in smaller projects in other parts of Asia.

Suncity Group Holdings Limited is already trying to gain more control in some parts of Asia. At present it has a contract to run a casino in Van Don in Northern Vietnam and a 34% stake in central Vietnam’s Hoiana Casino. The company was looking for diversification in an exercise to maintain full operational control over those estate’s to which it takes VIP clients.

Casino Hoiana’s gate is expected to open somewhere next summer. The casino will have 140 tables, of which half will be for VIP’s and the other half for regular clients. Andrew Lo said that Casino Hoiana projected table is near to $100 million per table, clarifying thhat this a timid figure. Suncity’s, Crown Casino in Danang, where the company has operated a single room since 2016, is bringing in around $200 million a table.

Source:CalvinAyre