Macau has one of the most progressive gambling industries in the world which is in a constant state of development. Now, in an effort to integrate blockchain technology into the world’s largest gambling market, the Macau-listed gaming developer Dragon Corp is aiming to raise half a billion dollars through an initial coin offering (ICO).
Macau gaming company Dragon Corp. intends to raise $500 million through an initial coin offering (ICO). Dragon’s ICO will not be subject to recent regulations imposed by the Chinese authorities because it is being issued in Hong Kong.
Macau has one of the most progressive gambling industries in the world which is in a constant state of development. Now, in an effort to integrate blockchain technology into the world’s largest gambling market, the Macau-listed gaming developer Dragon Corp is aiming to raise half a billion dollars through an initial coin offering (ICO). By bringing cryptocurrency to the land-based casinos, this innovation is expected to meet the high expectations of the millions of users.
Thailand-based Dragon Corp which is one of the leaders in the industry has the objective to amass about $500 million with the help of the initial coin offering, which will help the credit offering. VIP junket operators, which are middlemen who act as facilitators for the multi-billion dollar casinos, will utilize the tokens issued in the ICO by offering credit on behalf of casino operators.
Chakrit Ahmad, CEO of Wi Holding, the company behind the blockchain technology, shares,
“This is the first time anybody has allowed the public to invest in a public junket or become a shareholder of a casino. You’re basically becoming a shareholder in a junket, utilizing blockchain technology, getting revenues from that, and plugging that back into the token.”
The money raised from the sale of digital tokens will be utilized in the funding of the construction of the Dragon Pearl Casino Hotel. It is an ambitious 16,000 square meters, floating structure, which is being constructed in Norway and will be deployed to Macau by 2019. According to Ahmad, so as to facilitate the gaming process, the company is aiming to create a debit card or the so-called “social wallet” to contain the digital currency. With this debit card, the players will be able to withdraw real money from any ATM in their vicinity.
He added, “We basically provide liquidity via our own exchange, and also major exchanges in the world for the digital currency, so that token will be listed on multiple exchanges. You can have a digital exchange in Hong Kong or in Thailand or elsewhere, and you can cash out.”
This will facilitate its liquidity, as the debit card will allow people to easily turn their digital tokens into actual money which they can utilize anywhere around the world. The digital tokens won’t be issued until October 27, but the CEO of Wi Holding confirmed that the group has already secured $265 million.
The project will be launched in Hong Kong, which means it will not be affected by the recent ban imposed by the People’s Bank of China on creating and selling cryptocurrency.
Notably, till now, the use of cryptocurrencies in the gaming sector has largely been confined to online gambling. Dragon Corp. and Wi Holding are looking to bring the technology to casino floors, with junkets contributing more than half of Macau’s total casino revenues.
For projects built on blockchain technology, ICOs are key means of raising funds. However, in wake of deceitful fundraising and speculative investment, they are under constant scrutiny from regulators. Dragon’s ICO is not subject to the recent regulations imposed by Chinese authorities as the tokens will be issued in Hong Kong. However, the Chinese authorities would be able to track illegal outflows through the casinos, since the transaction are digital in nature.
Under Hong Kong’s Securities and Futures Commission, digital tokens issued in ICOS are not subject to regulation as they are characterized as “a virtual commodity”. Although the tokens that offer buyers an equity stake are subject to regulations as they are regarded as “shares”.
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