VIP clubs are still in demand, although we may not see whales spending huge amounts as they used to in Macau. VIPs are still a good business for companies who want to increase revenue, which Aquis understands.
Aquis Entertainment has a few problems, including some recent issues in Australia with their Canberra Casino proposal for redevelopment. Australia gave the company a deadline to get the changes started, which may be one of the reasons the company is trying to boost revenue with VIP income. They may need more revenue to undertake their project.
The company is listed on the Australian stock market and owned by Tong Fung, a Hong Kong developer. Fung has been the main shareholder helping the company since 2017 to keep going.
Fung stated that he is looking to change towards VIP gaming. The change over in staff that recently occurred is meant to help ensure that VIP gamers are brought into the Casino Canberra as a way to gain more revenue.
He also stated they would mine the existing database next year to solidify their efforts to gain quality in their casino.
Fung will go ahead with the redevelopment plans, which are going to cost about $248.5 million. The redevelopment is adding two hotels, dining, and shopping.
Redevelopment of Canberra
The redevelopment plans began in 2015. However, the casino put the plans on hold, and it was suspected that the casino owners were not happy about the lack of slot machines. Australia would not approve an upgrade on the casino floor for the number of slot machines they wanted to add.
Canberra asked for permission to add 500 more slot machines, but Australian regulators would only allow 200. Casino Canberra is also not authorized at this type of have any slot machines. Aquis was unable to increase revenue with the slot machines as they planned. They were also having issues with revenue for the redevelopment plans.
The ultimatum to get the development plans in motion by May 14 is why the casino is now responding with the VIP concept. Aquis took over Canberra in 2014, paying $4.5 million. Last year, the company only reported $10 million for its revenue. The vision of getting more income into the casino by using VIPs is hopefully a short-term fix to the revenue issue that will help in getting the casino redevelopment in motion.
Tony Fung, Crown Resorts, and Star Entertainment are part of the casino, and they want their revenue.