Asian junket operator, Suncity Group Holdings Limited, has reportedly announced that it has signed an agreement that is to give it the exclusive right to operate gaming operations inside Vietnam’s under-construction Hoiana integrated casino resort.
According to a Tuesday report from GGRAsia, the Hong Kong-listed firm used an official filing to reveal that the ten-year deal is scheduled to begin immediately upon the opening of the first stage of the facility near the city of Da Nang, which is expected to occur during the fourth quarter of this year, and involve it managing a casino initially due to feature a selection of over 300 slots as well as 140 gaming tables.
Suncity Group purchased a controlling 34% stake in the Hoiana project in August and reportedly revealed that the new arrangement is to additionally see it oversee all of the coming 1,000-room development’s food and drink outlets. In return, it disclosed that it will receive 3% of these facilities’ annual revenues as well as 6% of their associated earnings before interest, tax, depreciation and amortization.
Reportedly read the Monday filing from Suncity…
“The directors believe that the agreement will allow the group to expand its customer base to Vietnam and at the same time enable the group to leverage on the board’s expertise in the gaming market.”
In exchange for running all of the future casino operations inside the Hoiana development, GGRAsia reported that Suncity Group explained that it is to collect an annual incentive fee equal to 6% of the property’s earnings before interest, taxation, depreciation and amortization from gaming.
The Group reportedly stated that the new contract will also involve it being rewarded with a quarterly base fee that is due to be equivalent to 3% of the Vietnam venue’s aggregate mass-market gaming revenues after tax. It declared that this portion of the alliance moreover contains a provision that will see it receive a percentage of the coming property’s rolling VIP turnover via the implementation of a sliding scale that is to start at 1% before topping out at 3%.