Macau-based junket operator Suncity Group’s subsidiary is looking to expand in the newly regulated Japanese market with its plans to develop a hotel and casino on the country’s Miyako Island.
In its recent filing with the Hong Kong stock exchange, the Suncity Group Holdings Limited said that they have already struck a deal to pay $47 million to purchase 51 percent of a 27-acre parcel of land on the Japanese island.
Suncity is amongst the biggest junket operator globally. According to the reports, it controls over 50 percent of the VIP gambling industry in the world’s biggest gambling market – Macau.
The plans to expand in other parts of Asia is a part of its strategy to diversify amidst shrinking VIP turnout at casinos due to ongoing US-China trade war.
Recently, Suncity was also embroiled in a massive controversy after state-run Chinese media house alleged that the junket operator had been facilitating VIP Chinese gamblers to participate in online gambling at overseas casinos.
Economic Information Daily, an affiliate of the state-run media Xinhua News Agency, published a report where it singled out Suncity and alleged that the junket operator was running a massive network of online gambling websites which were based overseas and were created to target customers from mainland China.
Suncity, however, rubbished the claims and said that they have been working fully in compliance with the local Macau laws and are not involved in any form of online gambling.
Recently, Suncity also confirmed they are shutting their VIP gambling rooms located at The Star’s Sydney casino.
The move could be seen as Suncity’s decision to minimize its presence in the Australian market before it completely pulls out.