Summit Ascent Holdings, operator of Tigre de Cristal in Vladivostok, is set to continue to get free reign over the market for at least the next two years, says Union Gaming.
The brokerage said its VIP segment will be the main winner, forecasting a 80 growth in VIP volume in 2017. The casino saw VIP growth of 160 percent in 17Q1.
An online visa application system, which goes live in three weeks, should also help drive volume too, said the brokerage.
“Ultimately, we like the odds of a jurisdiction that is friendly with China to enjoy the benefits of outbound Chinese tourism, which, when combined with access to the under-penetrated northeast of China, makes for a compelling long-term growth story.”
The brokerage also forecasts Tigre to enjoy monopoly status for at least two more years.
“In all likelihood Summit Ascent will remain the lone operator until at least 19H2, when we would expect Summit Ascent’s Phase 2A, as well as NagaCorp’s project, to come online.”