Australia-listed casino firm Donaco International Ltd confirmed in a Tuesday filing a seven-day extension to the temporary shutdown of its gaming operations at the Aristo International Hotel (pictured in file photo) in Lao Cai, Vietnam. An initial 15 day shuttering amid the Covid-19 pandemic had run until April 15.
In the same filing Donaco confirmed the suspension of casino operations at its Star Vegas Resort and Club in Poipet, Cambodia, remained in place. The temporary shutdown was in line with the Cambodian government restrictions, the company said.
“…the closure of both casino operations [at Vietnam and Cambodia] will have a material impact on Donaco’s business,” the company stated in the filing.
But it added: “Donaco is successfully undertaking pragmatic measures to reduce costs, which will mitigate this impact to an extent.”
The casino operator said earlier this month that it expected a “cash burn rate” of US$800,000 and US$900,000 per month during the temporary shutdown of its two casinos. Such expenses were costs related to the maintaining of the casino assets and other corporate costs, Donaco said.
On April 1 Vietnam’s government had ordered social distancing measures and the shuttering of non-essential businesses to curb the further spread of a novel coronavirus, and its associated infection Covid-19. Several casino operators in Vietnam confirmed a 15-day shutdown of their venues starting from that day.
Donaco said in its Tuesday filing explaining the extension of its precautionary measure in Vietnam: “The company believes the current Covid-19 situation poses a risk to the health and safety of staff and visitors at Aristo if operations resumed, which could have adverse long-term consequences for Donaco.”
Vietnam’s Prime Minister, Nguyen Xuan Phuc, said at a Monday cabinet meeting that the country had seen an easing of its situation relative to Covid-19, and the “risk levels” in various localities might be downgraded at a Wednesday meeting, Vietnam News Agency reported.
But Mr Nguyen also called for continuous vigilance and said social distancing measures must be observed seriously.
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”Momentum is expected to grow as mainland China recently reopened its borders, and this presents a substantial growth potential for us as historically a large portion of our clientele came from China”
Non-executive chairman of Donaco International