There is no name anywhere on the outside of this property (above) in
Cambodia. It used to be called Caesars, but now may be the Titan
King, but you can’t tell because they have never had signage. For their services,
junket promoters demand and get more than 75 percent of the aftertax
casino theoretical win.
They take this across the board and do not limit themselves to high-end
tables, but take any player who walks into the resort. Their presence is so
ubiquitous that even a $5 baccarat player will use the non-negotiable
chips/play incentives offered by the junket promoters. The promoters actually
co-opt all players who walk into the casino, and not just their own recruited
players. They achieve this by threatening to withdraw marketing support
from the casinos that do not allow them access to the walk-in players.
The casinos end up paying junket-style commissions to every player who
comes in the door. As a result of our initial review, the primary questions the
potential investors had about Bavet, Cambodia were:
- Can we possibly make money in this ultra-competitive environment
in a small, limited property?
- Can we operate without being completely dominated by junket promoters
and without giving potentially uncollectable credit to this group?
And what can we do operationally to limit their dominance?
- Can we make an operational profit?