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Donaco shuts down Star Vegas operations following closure of Thailand-Cambodia border

Newsdesk by Newsdesk
Wed 25 Mar 2020 at 05:53
Deconstructing  Donaco

Star Vegas in Poipet, Cambodia

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Donaco International Ltd has temporarily closed most operations at its Star Vegas Hotel in Poipet, Cambodia following an announcement by the government of Thailand this week that the border crossing between the two countries would be closed for two weeks.

In an ASX filing early Wednesday morning, Donaco said it has organized unpaid leave for multiple staff members through March and April as well as reducing headcount and deferring capital expenditure.

The measures follow a 15% month-on-month reduction in casino patronage over the first 22 days of March to 53,463, down from 63,039 during the first 22 days of February, at an average of 2,430 players per day. Ironically, rolling chip turnover during the same period had increased 9% to THB1.55 billion (US$47.4 million).

Donaco’s Aristo Hotel in Vietnam remains open but with reduced staffing due to lower business volumes.

“The board and management is closely monitoring the situation, with the safety of both our visitors and staff foremost in our mind,” said Donaco Chairman Mel Ashton. “We are taking pro-active measures to ensure a safe operating environment, as well as controlling expenditure.

“We have also unfortunately had to make some headcount reductions, which we very much regret the need to make, however this is a necessary decision for the current environment.”

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The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

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