Suncity Group Holdings Limited, the listed arm of Macau’s biggest VIP junket operator Suncity Group, has agreed to pay US$47 million for 51 per cent of a 27-acre parcel of land on Miyako Island in the Okinawa Island chain, according to a recent filing made with the Hong Kong Exchange. Suncity, widely estimated to control half of the total VIP gaming industry in the world’s gambling hub, has been aggressively snapping up casinos around Asia to diversify its income source, as it’s been squeezed by a slowdown in Macau’s VIP business and increased oversight by mainland China’s central government. In April, Suncity founder and Chairman Alvin Chau made US$191 million credit facility available to his own company for acquisitions. Chau’s net worth has been estimated by Wealth-X at no less than US$2 billion. Japan has become a target for casino operators since the country passed a law allowing casinos to operate in July 2018. Three licenses are on offer in the first seven years, and major casino operators, including Melco, Galaxy Entertainment Group, Las Vegas Sands and Malaysia’s Genting Berhad have all signalled interest, though the first casinos are not expected to open before 2025. The gross revenue of Macau’s VIP gambling business rose 10 per cent last year to US$21 billion, but have fallen by 14.5 per cent this year, as high rollers have stayed away. That has pushed Macau’s casino operators to shift their focus to mass market gamblers, while the local authorities seek to broaden the special administrative region into a family-friendly tourist destination. Suncity’s interim revenue fell 32.7 per cent to US$43 million, with net losses at US$175.4 million, according to its first-half financial report. In its filing, Suncity said it will apply for the land on Miyako, currently designated as farmland, to be zoned for hotel and resort development. Located near the southern end of the Japanese island chain, Miyako has become a popular cruise ship destination for Chinese tourists. Suncity was interested in getting involved in a Japanese casino, as 30 per cent of the junket operator’s revenue now comes from outside Macau, compared to 10 per cent five years ago, the company’s chief investment officer Andrew Lo Kai-bong said in a 2019 Bloomberg interview. In August 2018, the company bought 34 per cent of Hoiana, a US$4 billion casino resort project near Hoi An in Vietnam, due to open late 2019 or early 2020, according to Suncity. In April 2019, Suncity paid US$91.5 million to raise its stake in Summit Ascent from 3.3 per cent to 28 per cent. Summit Ascent holds 60 per cent of the equity in Tigre De Cristal casino in Vladivostok, Russia, and was originally owned by Lawrence Ho, chairman of Melco. In June 2019, Suncity signed a cooperation agreement with Paradise casino in Busan, South Korea and opened a VIP club within Nagaworld, Cambodia’s biggest casino operator, in the same month. Suncity keeps its junket business private, but a spokesperson said in response to South China Morning Post that the listed entity has access to the same pool of customer data and shares travel agency services. The company’s founder Chau declined to comment. In its filing, Suncity said it would continue to diversify its businesses to tourism in Asian countries, focusing on casinos and casino management services.