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Donaco links to junket Heng Sheng, soccer giant Man Utd

Aug 20, 2015 Newsdesk Latest News, Rest of Asia, Top of the deck  


Donaco links to junket Heng Sheng, soccer giant Man Utd

Southeast Asia casino operator Donaco International Ltd on Thursday announced an agreement with Macau VIP gaming promoter Heng Sheng Group to bring high rollers to the former’s Star Vegas Resort and Club (pictured), located in Poipet on Cambodia’s frontier with Thailand.

On Wednesday, Australia-listed Donaco had announced an exclusive sponsorship agreement with English soccer giants Manchester United.

Under the three-year deal between Donaco and Heng Sheng Group – also known as Hengsheng Group –, the VIP promoter will bring high rollers from Asia to a new dedicated gaming area at the Star Vegas Resort and Club. The new facility is to commence operations in mid-September.

“This will expand the customer base of the Star Vegas beyond its current patronage by Thai customers,” Donaco said in a press release on the Heng Sheng agreement that was filed with the Australian Securities Exchange (ASX).

Heng Sheng Group was established in Macau in 2011. The firm operates VIP gaming rooms in Macau, Vietnam and the United Kingdom.

The new VIP area at Star Vegas will have up to 50 baccarat tables. Donaco will supply the dealers, while Heng Sheng will supply customer service workers, the release stated.

It added: “The parties will share the profits from the new facility. Heng Sheng will guarantee a certain minimum win rate, and be responsible for paying all junket commissions. In return, Heng Sheng will receive a larger share of the profit from the venture.”

Donaco stressed it would have no exposure to junket commissions or gaming bad debt related to credit extension to VIP players.

Heng Sheng will also guarantee a minimum turnover level of THB3 billion (US$84.4 million) per month, the release added, referring to Thailand’s currency, the baht.

“This deal provides an illustration of the multiple growth opportunities for our Star Vegas business,” Donaco’s managing director Joey Lim Keong Yew said in a statement included in Thursday’s press release about the Heng Sheng deal.

He added: “The quality and scale of the property are perfectly suitable for a leading VIP promoter like the Heng Sheng Group to offer to their players.”

Man Utd deal

Donaco said in a Wednesday press release filed with ASX that it has reached a three-year sponsorship deal with English Premier League soccer club Manchester United.  Under the agreement, Donaco will be appointed as the “exclusive casino resort partner” of the club in Thailand, Cambodia, Vietnam, Laos, Myanmar and South Korea.

Among other benefits, the firm will receive the right to use Manchester United imagery and branding to promote its properties.

No financial details of the agreement were disclosed.

Aside from Cambodia’s Star Vegas property, Donaco also operates a casino-hotel called Aristo International Hotel in Lao Cai province in Vietnam, on that country’s northern border with China.

According to Donaco, Manchester United has 325 million “followers” in Asia. The filing didn’t specify whether that was a reference to social media or some other measurement. It added however that in Thailand alone, the club had “more than 19.5 million followers”. It cited marketing studies as the source of the information.

“This is a significant partnership for Manchester United, with Donaco being our first ever official casino resort partner in Thailand, Cambodia, Vietnam, Laos, Myanmar and South Korea,” Manchester United group managing director, Richard Arnold, said  as quoted in Wednesday’s  Donaco press release.

Donaco’s Mr Lim stated: “Through our partnership with Manchester United, we look forward to delivering compelling marketing campaigns to better engage with our customers and fans and help expedite our growth and footprint across the region.”

Donaco earlier this month announced a new corporate branding and logo featuring a fountain.

The firm’s results for financial year 2015, which ended on June 30, will be announced this month.


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