Summit Ascent seeks direct VIP model in Russia

The gaming operator is said to be planning a more direct approach at Tigre de Cristal instead of relying on the controlling partner, Suncity Group.

Russia.- Analysts at Goldman Sachs say that gaming operator Summit Ascent is seeking to establish a more direct VIP model at its Russian casino, Tigre de Cristal, where Suncity Group is the controlling partner.

Suncity Group is currently in charge of supplying the Vladivostok casino with VIP players but Goldman Sachs says that Summit Ascent’s vision for Russia includes the intention of extending credit directly to its own players using Suncity’s database.

The bank says the operator revealed the strategy at a corporate event.

Suncity owns almost 70 per cent of Summit Ascent but the move would allow the firm to preserve profit by avoiding the payment of junket commissions. However, the move would mean Summit Ascent having to bear credit risk.

The company believes it can achieve US$200m EBITDA in the long run, Goldman Sachs said.

The Russian casino showed positive EBITDA for the six months ending December 31 after a US$3m EBITDA loss in the first half of the year.

Management believes that a recovery will be driven by the venue’s proximity to South Korea and players’ demand for entertainment.