Macau May Become 1st Crypto Gambling HubHarry Coulter | 24 Oct 2018
DeClub International Limited, the Macau based Casino Management and Technology Company, and Malta based Wide Rich Global Company, are planning Macau’s first blockchain based casino.
In a press statement by DeClub, the venture seeks to break the barriers that have traditionally excluded many from entering the market. They plan to help entrepreneurs to gain access to the gambling market and earn through tokenization, and at the same time raise funds for their venture.
Initial Coin Offering To Raise Funds
In order to purchase DeClub and acquire a Macau junket license, Wide Rich plans to raise $1 billion through an ICO or initial coin offering. Once the acquisition is complete the companies then plan to purchase more high-earning casinos around the globe. It will then create the first hub of online and land based blockchain cashless casinos.
An initial coin offering is used by start-ups to raise capital by selling tokens specific to their venture. Interested parties purchase the tokens in the hope that the business takes off, and they receive a great return on investment.
Wide Rich will be offering a DEC utility token, the owner of which will have hosting rights, referral rights and the right to invest in cash lending pools.
DeClub will issue chip tokens called NNC’s, a stable coin that will be used for purchases of goods and services in their establishments. Unlike utility tokens, stable-coins are linked to an asset such as fiat currency or gold. This gives the token value more stability.
The use of blockchain will allow the company to undercut Macau’s existing junket licensees, as only 1% commission will be charged as opposed to the current 7%. The organizations believe that since the casinos will never come into contact with the tokens it will be able to bypass the MAM’s crypto-gambling ban.
DeClub Not The First Venture To Try Crack Crypto
In 2017 Dragon Corp launched an ICO and raised $500 million dollars that it planned to use to fund its Macau-based floating casino. However, the project never came to fruition after a crucial contractor withdrew. The company has said it is investigating alternative avenues.
A recent statement by the Macau Gaming Inspection and Coordination Bureau said that cryptocurrency gambling would never be permitted in Macau. However, as Kennis Wong the former CEO of Jimei International Entertainment is the brain behind the new operation, it may just be successful and offer players an alternative to wagering cash.