Casino operator feels pinch

Asian casino operator Donaco International has outed itself as the latest victim of the outbreak of coronavirus in China.

Donaco owns and operates casinos and leisure facilities in Vietnam and Cambodia. Picture: Supllied

Asian casino operator Donaco International has outed itself as the latest victim of the outbreak of coronavirus in China, after revealing on Monday that a clampdown on border crossings into the region from China has caused a 75 per cent drop in casino visitations and an 82 per cent dive in casino chip turnover.

Donaco, which owns and operates casinos and leisure facilities in Vietnam and Cambodia, said the virus had hurt business operations at the Aristo International Hotel in Lao Cai, Vietnam, which borders Yunnan Province in China.

The border crossing at Lao Cai was tightly restricted, with crossing allowed only for visitors with an “urgent” or “official” business reason, the company said.

This led to a substantial reduction in players visiting the Aristo casino hall, and consequent reduction in gaming turnover.

For the first 11 days of February, total casino visitation was 1374 players, averaging 125 per day. This was a decline of 75 per cent from the first 11 days of January, when casino visitation was 5510 players.

Rolling chip turnover in the first 11 days of February declined by 82 per cent, compared to the first 11 days of January 2020. The decline was from 317 million renminbi ($67m) to 58 million.

“Currently there is no time frame on the partial closure of the border crossing, which is likely to depend on the success of the broader efforts being undertaken within China and around the world to contain the virus,’’ Donaco said.

Aristo management had arranged unpaid leave for many staff in February, as well as deferring capital expenditure projects.

At the company’s largest business, the DNA Star Vegas casino in Poipet, Cambodia, there was no direct impact as yet from the coronavirus.

The border crossing from Thailand into Poipet remained open as usual, but if the virus spread it could hurt the local economy.

“In the longer term, if efforts to contain the virus are unsuccessful, there is likely to be an impact on the Thai economy generally, which has a strong tourism element,” it said.

“This may lead to an overall reduction in demand from Thai visitors to the Poipet casino.”

Donaco shares rose 4 per cent to 7.6c.