Donaco signs deal to further VIP reach

Australian-listed Donaco International has signed a deal with international marketing agency Vivo Tower Ltd. to attract junkets from Macau, Hong Kong and Malaysia to its Star Vegas property, according to a filing from the company to the ASX on Friday.

Under the agreement, Vivo Tower will pay Donaco a minimum fixed fee of US$1.5 million in FY18, which will increase to US$3 million in subsequent years, plus a variable revenue share.

According to Donaco, Vivo Tower has already engaged Malaysian junket operator, Da Kim Global Group to bring in VIP customers starting from July 1, 2017.

“We are pleased to confirm the launch of a new era at Star Vegas, with a focus on increasing visitation from international players, in order to supplement the existing healthy Thai-facing business,” said Donaco managing director and CEO, Joey Lim.