Dragon Corp., a Macau-based company is looking to raise a whopping $500 million through an ICO fundraiser to build a floating casino.
The blockchain technology is infiltrating all sectors and casinos look to be no exception. Dragon Corp will reward contributors with tokens which will be pegged to gambling chips that can be used in the casino itself.
The company’s web page floats a disclaimer making it clear that contributions should not be seen as an equity purchase, simply a purchase of gambling chips.
The Macau Casino/ Junket Market
Macau is the world’s largest gambling market, five times larger than Las Vegas. Whilst China’s ban on ICO stands, the Dragon Corp ICO will be able to bypass China’s strict legislative framework since the operation will be Hong-Kong based.
With the exception of Macau, casino gambling in China is illegal. Macau attracts customers from the mainland through the use of junket companies which, leveraging contacts in China itself, bring high-rolling VIP clients to the tables usually in the form of a packaged tour that incorporates high-end accommodation, chauffeur and private entertainment services.
Once in Macau, the junket will hand over to the client their allocation of gambling chips which are generally casino-specific. Gamblers can only collect any eventual winnings in cash through the junket’s original contact in China.
This arrangement is designed to ensure that no actual cash leaves or enters the country, thus ensuring that the client is not in technical breach of the country’s strict legislative framework. The casino/junket market is itself colossal with around $17 billion thought to be staked through Macau’s largest single junket, SinCity Group.
Dragon Casino Plans a Better Junket
Dragon Corp. CEO Chakrit Ahmad notes that this will be the first public junket crowdfund. Whilst typical junkets charge up to 5% in commission, Dragon plans on charging only 1%.
The company plans to allocate 20% of its ICO funds to the construction of a $300 million casino house that will go by the name of Dragon Pearl Hotel Casino and which will itself be designed to float at sea.
It is understood that 80% of the total construction cost will come from the Norwegian government which, due to its own offshore platform construction expertise, has decided to go ahead with a stake in the Dragon project as part of its own wider program of reinvesting its oil revenues.
Ahmad also points out that the token will be listed on its own exchange to ensure liquidity on the token but it is understood that the token will also be platformed on major exchanges.