The new tables, which will be added over the next few months, will add to the 140 tables that Star Vegas already has available for its Thai players and will fill almost all of the available space in the property, the Australia-listed company said in a filing on Monday.
Donaco said the expansion of the gaming floor stemmed from a deal with international casino market agency Vivo Tower Ltd. to bring new junket operators to the property.
If you recall, the Australian casino company signed a contract with Vivo Tower to broker deals with junket operators in Macau, Hong Kong, Malaysia and beyond to ferry high-rolling gamblers to Star Vegas.
Under the deal, Vivo Tower will pay Donaco a minimum fixed fee of $1.5 million in FY18, rising to $3 million in subsequent years, plus a variable revenue share based on which junkets Vivo brings into the fold, as well as the levels of rolling chip turnover and the win rates generated by those operations.
“Vivo Tower has signed a number of deals with international junkets, and expects to add approximately 100 gaming tables to the property over the next few months,” Donaco said in Monday’s filing.
The Australian casino operator is in the middle of completing a transition to full management control of Star Vegas, after the management contract held by the previous owner of the resort ended on June 30. Star Vegas currently draws most of its customers from neighboring Thailand, but Donaco CEO Joey Lim said the Vivo Tower deal represented “a new era” at the property, “with a focus on increasing visitation from international players in order to supplement the existing healthy Thai-facing business.”