SunCity Group, one of Macau’s largest junket platforms, could send VIP players to Nagakov’s flagship property in Cambodia by December, Union Gaming Research Macao Ltd said in a note released on Tuesday.
Naga World (pictured) is enjoying the benefits of a new incentive VIP program launched last year. The accommodation has positioned itself as an attractive niche product for casino operators and junket operators who want a more attractive deal compared to Macau.
“Suncity expects to start sending volumes to Nagaworld as early as December,” Union Gaming analysts Grant Govensen and Felicity Chiang wrote in a note after visiting Nagaworld.
“While the company has not provided any indication of what size of supplies it would expect, we believe SunCity’s offering to Nagaworld is at least consistent with those already being offered by Asian countries,” the note added.
Asia Nations, a junket based in mainland China that has not entered Macau, began contributing to the operation of Naga World in late August. It dispatches players outside of Macau.
“In the early weeks of Asian countries attracting Naga players, we see monthly rolling chip volumes of approximately $150 million, an increase of approximately 40% over traditional real estate junket volumes,” Union Gaming’s note said. 안전한 파워볼사이트
“Considering that, monthly rolling chip volumes are estimated at US$150 million, which is only 1% of Suncity’s Macao general rolling chip volumes,” Govtsen and Chiang added. “We think it’s realistic to think that junkets like Suncity could allocate a single-digit low share of VIP volumes to NagaWorld.”
Hong Kong-listed NagaCorp holds a casino license for 70 years in Cambodia until 2065, and has been operating exclusively for 41 years within a 200-km (124-mile) radius of Phnom Penh. NagaWorld had 169 tables and 1,544 electronic game consoles as of June 30.
Nagakov chairman Tim McNally told GGRAsia in August that casino operators were prepared to join seven to eight junket operators exposed to Macau.
NagaCorp reported a 23.5% year-over-year increase in gaming gross revenue to $91.5 million in the third quarter of 2014. Credit Suisse AG said at the time that “strong volume growth” suggested “a robust execution of its China-centric strategy.”