Suncity Group’s recent acquisition of a 29.77% stake in Russian IR operator Summit Ascent Holdings will likely see VIP volume at Tigre de Cristal grow by nearly 250% next year, according to Union Gaming analyst Grant Govertsen.
In a research note published Monday, Govertsen observed that the April acquisition of a majority stake gave Suncity “real skin in the game” and, combined with Suncity director Andrew Lo being named Summit Ascent Deputy Chairman, provides considerable incentive to direct VIP volume Russia’s way.
“While we had expected Suncity’s initial small stake in Summit Ascent to result in a material VIP uptick, the more-aggressive acquisition of shares, and the Deputy Chairman’s role, suggest to us that VIP volume will increase much more significantly than had been anticipated,” he said.
Union Gaming had previously estimated VIP volume of around HK$30.3 billion (US$3.9 billion) in 2020, up from HK$15.6 billion in 2018 and an estimated US$17.2 billion in 2019. However, Govertsen said that estimate has now been revised to HK$59.7 billion (US$7.6 billion) in 2020.
RelatedPosts
