Donaco International Managing Director and CEO Joey Lim says the regional casino operator is ready to invest in larger integrated resort opportunities, with Japan high on the list.
In an exclusive interview to be published in full in the upcoming July edition of Inside Asian Gaming, Mr Lim has revealed that Donaco already boasts a Japanese partner with the goal of exploring a regional IR once Japan’s casino industry gains a foothold.
“I won’t be presumptuous to talk about a Tokyo bid, an Osaka bid or even an Okinawa bid [but] I’m talking about the second wave of Japanese gaming, perhaps something more regional,” he said. “We already have partners who are very actively engaged with us looking for the opportunity to break through. Our Japanese partner is extremely well regarded and very strong within Japan.”
Australian-listed Donaco, which operates Star Vegas in Poipet and Aristo International on Vietnam’s border with China, reported revenue of around AU$140 million in 2016, which Mr Lim says opens the door for expansion.
“With the acquisition of Star Vegas we are now able to start looking at larger opportunities,” he told IAG. “Last year … brings us to sort of a mid-size company now and it allows us to look at not necessarily large scale IR projects like Sands, MGM or Genting, but larger than 20 to 30 table operations.
“And we don’t exclude ourselves from participating in some of these large IR projects. I assisted on one North Asian integrated resort [Mohegan Sun’s Inspire in Incheon, South Korea], which should be breaking ground very soon.
“It was a little bit too large for DNA to take on. Down the line, being part of a consortium or even taking up a management contract on some of these larger scale projects is a distinct possibility.”
Donaco completed its US$360 million purchase of Star Vegas, which boasts 139 gaming tables and 1,600 machines servicing the Thailand market, in July 2015. The purchase saw Donaco’s revenue rise seven times and EBITDA 35 times in 2016, with EBITDA up another 10.5% for the nine months through March 2017.
Mr Lim said that although expansion was in Donaco’s future plans, it does not intend to spread its wings beyond Asia.
“We do want to focus on Asia, where not only do we have more complete local knowledge – which is always important in doing business no matter what industry you’re in – but especially when it comes to gaming and understanding of the government and how it works, as well as having strong local partners.
“For us in Asia, being Chinese and Malaysian, this is what we understand best.”
