Suncity Thai could see VIP roll up 250pct in Tigre

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Russia's Tigre de Crystal Casino Resort (pictured) is expected to post VIP gaming volume next year, up from HK$17.2 billion forecast to HK$59.7 billion ($7.61 billion), with its recently strengthened link to Macau junket brand Suncity being a factor. 안전 슬롯사이트

So, Union Gaming Securities Asia Ltd said as part of the outlook for its casino, a location near the Russian Pacific port of Vladivostok, pushed by Summit Ascent Holdings.

The brokerage maintained its forecast for Tigred Crystal VIP volume for the year at HK$17.2 billion, but said it could grow to 250% next year under Summit Ascension's new ownership structure. The revised estimate suggests total VIP volume will increase by HK$42.5 billion ($5.4 billion) between this year and next.

"VIP volumes will increase significantly more than expected," Union Gaming said in a note on Hong Kong-listed Summit Ascent published on Monday.

Hong Kong-listed Sun City Group Holdings Ltd. increased its stake in Summit Ascension. Last month, Sun City Group Holdings Ltd. said it had increased its stake in Summit Ascension shares to about 27.97%.

Suncity Group Holdings is controlled by Alvin Chau Check Wa, president of privately owned Suncity Group. Some investment analysts say the junket brand is the single biggest contributor to VIP volume in the Macau gaming market.

"Suncity [Group Holdings] has acquired a substantial ownership stake in the company [Summit Ascent], and we expect Summit Ascent's Tigred Crystal's VIP volume story to increase by nearly 250% next year (there is a noticeable upside risk depending on the volume Suncity has)," the brokerage said.

"Our previous estimates already reflected a noticeable increase in VIP volume in 2020, which was largely based on the small stake held by Suncity [Group Holdings] at the time. With Suncity's huge stake providing real skin in the game, we now expect VIP volume to be even higher," the Union Gaming note says.

"Considering absolute VIP volume growth of HK$42.5 billion between 2019 and 2020, we believe SunCity [brand] is sending more volume to existing casino rooms in Vietnam that already have no ownership stake," the note read.

The brokerage says there is room for growth, with Tigred Crystal's 2019-20 increase in VIP volume indicating "90 basis points of 2018 VIP volume in Macau, or literally rounding up error," so we believe there is noticeable upside potential in the estimates.

Union Gaming lists 2018 VIP volumes that occurred at some local casino resorts outside of Macau: US$35.7 billion at Nagakov's Nagarwold Casino Complex in Phnom Penh, Cambodia, and US$25.1 billion at Resorts World Sentosa, promoted by Genting Singapore Inc. of Singapore.