Hong Kong-listed vehicle controlled by Macau based casino junket investor Alvin Chau Cheok Wa, Suncity Group Holdings Ltd. said on Thursday that a wholly-owned subsidiary have signed a non-legally binding memo about probable cooperation with Paradise Co Ltd.
Suncity is best known for being a supplier of high-value Chinese casino gamblers to the Macau market. The company has been increasing its gaming investments to markets beyond Greater China. New resorts are set to open, such as Hoiana in Vietnam.
“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”, Suncity said in a recent announcement.
Additionally the firm said, “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 Hotel Busan booked only KRW20 billion in sales from casino in the three months to December 31, compared to the KRW80.7 billion achieved by the Walkerhill property in the capital Seoul, and KRW71.80 billion at Paradise City.
Another casino hotel run by Paradise Co., the Jeju Grand earned KRW7.4 billion in casino sales in the last quarter of 2018.
The contribution of the Chinese Players to Paradise Co’s “soft drop” group wide rose by 34.6% in the fourth quarter. This was the amount of cash that had been exchanged for chips by customers.
The fourth-quarter casino drop was up by 19.7%, the firm added. Recently, there has been volatility in South Korean casinos’ earnings from the Chinese players. Some investment analysts attribute this to the geopolitical tensions between South Korea and China.