Donaco International Ltd (ASX:DNA) Agreement with Heng Sheng Group
Sydney, Aug 20, 2015 AEST (ABN Newswire) - Donaco International Ltd (
ASX:DNA) ("Donaco" or "the Company") is pleased to announce that it has signed an agreement with Heng Sheng Group, one of Macau's leading VIP gaming promoters, to bring its VIP players to the Star Vegas Resort & Club.
Heng Sheng Group was established in Macau in 2011, and provides dedicated services to its members in the form of gaming options and leisure travel. The Group operates VIP gaming facilities in Macau, Vietnam, and the United Kingdom.
Under the three year deal, Heng Sheng Group will bring its VIP players from Asia to a new dedicated gaming facility at the Star Vegas. This will expand the customer base of the Star Vegas beyond its current patronage by Thai customers.
The new dedicated gaming facility will have up to 50 baccarat tables. Donaco will supply the dealers, while Heng Sheng will supply customer service personnel.
The parties will share the profits from the new facility. Heng Sheng will guarantee a certain minimum win rate, and be responsible for paying all junket commissions. In return, Heng Sheng will receive a larger share of the profit from the venture.
Donaco will have no exposure to junket commissions, or bad debts.
Heng Sheng will also guarantee a minimum turnover level of THB3 billion per month. This will be all new business for Donaco, as the new facility is expected to have no impact on existing Thai customers.
The new gaming facility is expected to commence operations in mid-September 2015.
Managing Director of Donaco, Mr Joey Lim, said "This deal provides an illustration of the multiple growth opportunities for our Star Vegas business. The quality and scale of the property are perfectly suitable for a leading VIP promoter like the Heng Sheng Group to offer to their players. We look forward to continuing to expand our business in partnership with Heng Sheng."
About Donaco International Ltd
Donaco International Limited (ASX:DNA) operates leisure, entertainment and associated technology businesses across the Asia Pacific region.
Donaco's largest business is the Star Vegas Resort & Club, a successful casino and hotel complex in Poipet, Cambodia, on the border with Thailand. Star Vegas was established in 1999, and is the largest and highest quality of the Poipet casino hotels. The property has more than 100 gaming tables, more than 1400 slot machines, and 385 hotel rooms.
Donaco's flagship business is the Aristo International Hotel, a successful boutique casino in northern Vietnam, located on the border with Yunnan Province, China. Established in 2002, the property has recently been expanded to a brand new five star resort complex with 400 hotel rooms. Donaco is a pioneer casino operator in Vietnam, and owns a 95% interest in the business, in a joint venture with the Government of Vietnam.
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