The best cure for sagging revenues always seems to be the same trick. South Korean casino operator Paradise Co has entered into an agreement with Suncity Group Holdings Ltd to bring in more high-value Chinese tourists to its resort, GGRAsia reports.
Suncity broke the news in a filing with the Hong Kong Stock Exchange. In it, they declared they’d entered into a non-legally binding memo to cooperate with the South Korean casino operator. Suncity is best known for bringing Chinese gamblers to Macau, but has recently broadened their scope to create tourism deals with other hot spot gambling locations.
Recently, SunCity declared:
“The company has been focusing on expanding its tourism-related businesses and the board believes that should the possible cooperation materialise, it can enable both parties to form a synergy and develop… strengths, resources and expertise…”
Regarding the deal with Paraidise Co, they promoted their new partner by saying:
“Paradise Casino Busan is currently operated by Paradise [Co] and is a licensed casino with full range of gaming facilities located at the Paradise Hotel Busan by Haeundae Beach, one of the best tourist attractions in Busan.”
Paradise Co, the operator of foreign-visitor only casinos in South Korea, has been improving its revenues recently, but still reported losses for Q4 of 2018. One of its strengths has been Chinese VIP gamblers, so they’ll be hoping that this deal helps bring them out of the red and into the black.
Suncity has previously entered into deals in both Cambodia and Vietnam, so they’re really building a track record for this global expansion.
They aren’t the only junket operator in the game of shipping Chinese gamblers all over the world though. Last month, Universal Entertainment made an announcement that they had signed a deal with CTS Shanghai Zhongqiao International Travel Service Co. Ltd to bring foreigners to the Okada Manila casino.
That makes the strategy in Asia pretty clear. Build it, and the Chinese will come.
