The Royal Casino in HalongTown, Vietnam, generated $8 billion ($345,000) in revenue in the third quarter of this year. After-tax profits were shown at this point as a result of the lodging business that appears to be holding the casino.
This was important news, as it marked the first time in the history of the casino that the operation set quarterly profit. The casino business has been struggling vigorously for Royal International, the operator of Royal Casino, but soaring accommodation revenues appear to be driving the company into greater profitability.
According to the submission, Royal Casino recorded a profit of VND60 billion ($2.6 million), which accounted for 36.8% of the company’s total revenue from January to September 2019.
Royal International generated a total of $163 billion ($7 million) in sales in the first nine months of this year. This is less than half of what you expected to record at the beginning of the year.
In a statement, Royal Casino explained that at this point the profitability is hurting the instability and seasonal nature of the casino business. It also added that the company had a lower profit than in the same period last year. Royal International lost more than $70 billion ($3 million) in taxes in the first nine months of 2019.
They also noted that the number of players did not reach the expected level and that “luck” is not on their way. There is an interesting explanation of the business of making money for customers who wish to wish for good luck.
While these factors play an important role in reducing revenue, the biggest factor can increase competition. Casinos are developing and thriving in places like Cambodia, Myanmar and the Philippines, which are hurting royal casino revenues.
It also doesn’t help that there are other options available within Vietnam itself. Currently, there are seven casinos in the country, and six are open to foreign passport holders.
With hotels and villas becoming a major source of revenue, it’s no surprise that the company decided to form a partnership at the planned 33-storey Twin Towers hotel. The new resort offers a significant amount of hotel space as well as karaoke bars, massage and spa centres, shops and other services. There is no set time for damage or opening of the facility.