One of the leading gambling junket investors in Macau is getting bullish on international expansion. The Tak Chun Group has announced that it wants to move into new markets and, during the grand opening of the new Tak Chun VIP Club at the MGM Cotai, laid out its plan to explore new possibilities.
Speaking at the event, the company’s CEO, Levo Chan, indicated that the expansion plans are part of a larger corporate strategy to lead the company into new markets. In a prepared statement that was published after the grand opening ceremony, Chan added, “In the coming year we plan to actively tap into the overseas markets by identifying new business locations, keep on expanding our empire and also enhance our VIP services and facilities in order to provide unparalleled, bespoke treatment to our VIP guests.”
The new VIP Club at the MGM Cotai opened its doors on November 1. It was installed, according to Chan, in response to increased customer demand in the VIP segment and in an effort to increase competition among casinos for VIP customers. The opinion of Tak Chun wasn’t shared by analysts, who have said that Macau is in store for a slowdown in gambling during the last quarter of this year and into 2019.
Tak Chun now operates 17 VIP clubs in Macau. It expanded its clubs at StarWorld, operated by Galaxy Entertainment, and Wynn Macau earlier this year. It also has a VIP club at Okada Manila in the Philippines and another at the Crowne Plaza Danang in Vietnam.
Tak Chun has indicated that the company has had a very strong year. It said last month that its VIP gaming business had remained steady through the first nine months and announced that it would not be tightening credit terms for VIP players. When credit terms are tightened, it is usually done in response to a decline in VIP action. The company’s chief financial officer, K.H. Tsang, asserted, “We’re talking a growth of over 30 percent year-on-year, which is higher than the industry’s average.”
Chan told attendees of last week’s MGS Entertainment Show 2018, an exposition for casino equipment suppliers, that the aggregate VIP gaming earnings will most likely continue in 2019. He added, “For next year, it would already be great if VIP business growth could plateau.”