High rollers, wealthy gamblers, and professional gamblers make up most of the revenue from Macau’s casinos.
While Las Vegas has built a model on mass-market play, Macau has catered to the VIP market. This VIP model is organized and enclave by a junket. A VIP junket operators, also known as VIP room promoters, act as facilitators for Macau’s billion-dollar casinos, guaranteeing a certain amount of revenue from wealthy gamblers, luring them with free accommodation, travel and other perks in Macau, the only place in China where casino gamble is legal.
Casinos in the world’s biggest gambling hub of Macau posted a 22.6% revenue jump in November from a year earlier, marking the sixteenth consecutive month of growth. The most popular game being baccarat.
When a high roller walks into a Macau VIP area, the junket will need to stake sometimes millions of dollars to guarantee the VIP’s action. Since Macau’s casino are a 24/7 industry, a key junket in might be hosting more than 100 high rollers at any one time, producing a turnover of more than US$250 million a day.
Cutting Cost for Casinos
Dragon, Inc. intends to offer the ERC20 based digital currency DragonCoin (DRG) and utility token Dragon Global Chips (DGC). DragonCoins will be used as a medium of exchange and to purchase Dragon Global Chips which will be used to exchange for physical gaming chips to be used at the tables.
Being able to offer digitalized tokens both to stake money and gaming chips while using Ethereum blockchain to record transactions and track tokens allows casinos to cut expenses.
Dragon estimates that cost to casino will be cut from 5%-7% to as low as 1%.
Dragon, Inc. has understood the cost benefits of firms using blockchain, and a high cash volume management structure like a casino has the potential to be an industry to utilize this technology. Gambling regulatory reporting and audit documents will become easier, requiring less manual processing. It can save casinos significant amounts eliminating the need to maintain an expensive inventory of notes and coins. .As a result, casinos could focus exclusively on value-added activities which will be further released to additional fund for DragonCoin holders.
The Dragon Pearl: Macau’s First Blockchain and Cashless Casino and Hotel
Dragon Inc. plans to open a number of cashless Dragon-branded hotels and casinos. Their proof of concept is The Dragon Pearl which could be operational as early as 2021. The Dragon Pearl will be a cashless Casino resort, where everything will be paid for using DRG and DGR.
This model has been done before with the Macau casino Jesters which opened earlier last year. It doesn’t run on the blockchain but allows players to spend “Mangrove” points that can be used to buy products.
“Our casino bar is the first in the country. The government is monitoring, it’s a test,” owner Zhang Bauquan told Reuters. “The local governments are very supportive,”
Giving Back With Charity
Dragon Inc. will also be will committed to social responsibility and direct a Charity Fund. The fund will be in the spirit of “8” which is a lucky number in Chinese philosophy.
- Support NGOs tackling gambling addiction
- Wider education of young people in blockchain and related cryptocurrency technology
- Poverty alleviation in the communities Dragon, Inc. is operating in
- Illiteracy in the communities Dragon, Inc. is operating in
- Job creation
- General support for the elderly in Macau
- ASEAN and Far East cultural and educational exchange programs and scholarships in Computer Science.