DeClub Macau Plans to Build World’s First Blockchain-Based Cashless Casinos Following $1 Billion ICO
Posted on: October 21, 2018, 09:00h.
Last updated on: October 21, 2018, 07:28h.
The first blockchain-powered land-based casinos could be on the horizon, if an ambitious new venture involving Macau-based casino management company DeClub and a Malta-based investment firm called Wide Rich Global Company comes to fruition.
According to an official statement from DeClub, Wide Rich is planning an initial coin offering (ICO) in an effort to raise $1 billion to fund the purchase of DeClub. The combined company will then acquire a Macau junket operator license, as well as “existing casinos with the best earning potential around the world.”
It then hopes to build “the world’s first blockchain-based casino gaming hub with fully integrated online and land-based casinos.”
“The tokenization of chips, casinos and their surrounding entertainment service providers will be able to build a pan-gambling business ecosystem together, so that people with varying business needs – from tourism, to business meetings, to shopping – can all gain easy and cost -effective access to customized and prestigious services on their mobile devices,” writes DeClub in a white paper, published on its website last week.
Former Junket CEO Behind Project
At a forthcoming ICO, Wide Rich will issue a utility token, “DEC,” which offers buyers rights to host, refer, and invest in cash lending pools.
Meanwhile, DeClub will be issuing a chip token called “NNC” — redeemable stablecoins that will facilitate payments for goods and services in casinos. A stablecoin is a type of cryptocurrency anchored to a stable asset, such as gold or fiat currencies, to avoid the volatility associated with regular cryptocurrencies.
DeClub was launched last year by Kennis Wong, the former CEO of junket group Jimei International Entertainment. It currently supplies professional mass gaming area membership management services to the Macau market.
Dragon Corp Floats Dragon Pearl Concept
This is not the first venture that hopes to integrate blockchain into the world’s biggest gambling hub. Last year Dragon Corp raised $500 million through an ICO of its cryptocurrency Dragon Coin.
Dragon Corp had hoped to use $300 million of the funds to build a floating casino, to be berthed in Macau, The Dragon Pearl — although that particular project may have run aground and the company says it is currently exploring other options.
Blockchain is an attractive option for Macau’s junket system because it can enable an operator to undercut existing junket operations.
The junkets allow high-rollers from the Chinese mainland to swerve government restrictions on the movement of cash into Macau from the Chinese mainland. Gamblers pay up in China and receive tokens, known as “rolling chips,” for use in the casinos of Macau.
Junkets can charge up to 7 percent for these transactions, but Dragon Corp says gamblers who buy rolling chips using its digital currency, will pay only 1 percent.
Dragon Corp believes its activities will bypass Macau’s cryptocurrency gambling ban because it says it acts only as a wallet — the casinos themselves never come into contact with any digital currency. Dragon Corp will pay casinos in traditional currency for the rolling chips it supplies to its gamblers.
The Monetary Authority of Macau (MAM’s) has prohibited financial institutions from from providing services to cryptocurrency businesses and organizations that have undertaken ICOs — however, there are no rules restricting ICO activities in the private sector.