All 3 properties were banking on Asian high rollers to be their big customers. There aren’t as many Asian high rollers as there used to be. In fact, Calvin Ayre questions if there are any Chinese high rollers around.
Regardless of the fact that gaming revenue accounts for less than half the revenue for Vegas Strip casino-resorts today concerns about high rollers are making it difficult for Resorts World and Alon. Lucky Dragon has a different set of financial concerns. Here’s more info:
- Alon having difficulty raising funds.
- Lucky Dragon is being financed most by American money, but that money may be running out.
- Genting keeps delaying Resorts World and is looking for help.
This looks bad, but it doesn’t mean these properties won’t have any customers and won’t get built. Here’s a look at the non-Asian high roller customers for the 3 resorts.
- Alon is being positioned similarly to Wynn. It’s an international luxury resort with a heavy focus on nightlife. Expect plenty of non-Asian high rollers (see initial plan here).
- Resorts World is being positioned as a family resort. High rollers might be their biggest customer financially, but the majority of guests would be “regular people.”
- Lucky Dragon is a 100% Chinese focused property. Everything evolves around Chinese culture. The scope of this project is smaller so they might not need as many VIP gamblers. Yes, that’s a reach. (See details on Lucky Dragon at Vegas.buzz)
The future of the north end of the Vegas Strip doesn’t look as bright today as it did just a few months ago. Hopefully these projects are able to move forward but it looks less likely as the Asian gaming market continues its downturn.