Dragon Inc Apply Blockchain on Macau Junkets

This year we have seen several ICO focusing on the gaming industry. There have been ICO for decentralized casinos, dice games on blockchain, decentralized lotteries and Esports gaming. But all these ICO have been focusing on gaming online and none has really attempted to solve current day problems faced by real-world casinos. Dragon Inc, which is looking to raise more than $400 million, is going apply blockchain technology into this industry.   

Casino operations in Macau is big business and revenue has been growing at a steady pace. In October 2017, gross gaming receipts rose 22.1 percent to $3.3 billion (Data from Macau Gaming Inspection and Coordination Bureau). This is a huge market and analysts forecast 2018 gaming revenue at $36 billion, according to the median estimate in a survey compiled by Bloomberg.   

Junket Operators Brings In The Wealth

Junkets account for a large portion of this rising revenue. In Macau, casinos have traditionally work with junket operators to bring in VIP gamers. Many of these wealthy VIP gamers are from overseas and they arrived in Macau for gaming as they are attracted by the luxury travel and accommodation promotions offered by the junket operators. These wealthy gamers account for a large percentage of the revenue for Macau’s casinos.    

Junket operators are a critical component for the Macau casino industry 

Large Transactional Costs In The Industry

However there are many hidden costs affecting the junket operators as well as the wealthy gamers. When the these gamers are ready to play at the VIP junket at Macau, the junket operators will prepare the stake money for the gamers. VIP gamers do not bet small and this can amount to millions being forked out by the junket operators, who has to vouch for the gamers. It is typical that the junket operators have to pay about 5% to cover the funding and credit costs.   

After winning at the games, the VIP gamers will require to transfer his winnings back to his country. This transfer of winnings will requires agents to facilitate the cross-border transfers and will cost the gamer about 5% to 7% of his winnings.   

Dragon Platform

Dragon Inc intends to create a platform (known as Dragon Platform) together with a ERC20 Dragon Coin DRG which is interchangeable with fiat and other major cryptocurrencies. This will facilitate the transfer of funds for gaming by the VIP gamers. Dragon Inc also recognized that the value of DRG can fluctuate with the inherent volatility of cryptocurrencies. Hence Dragon Inc will also create a family of utility tokens Dragon Global Chips DGC. The first DGC in the family will be DGC-HK with the value of 1 DGC-HK = HK$1.00. All the DGC created will be pegged to specific fiat currencies so as to facilitate exchange to physical gaming chips at the Dragon Junket or any Dragon affiliated gaming venues.  

With the interchangeability of DRG to DRC and back to DRG, as well as the ease of exchange of DRG to fiat and/or other cryptocurrencies, junket operators as well as VIP gamers will be able to reduce their credit and transfer costs. This will push the junket operations even higher as junket operators will be able to afford even better incentives and promotions to attract VIP gamers to Macau.    

As of now Dragon Inc. has already secured support from 4 key junket partners to join Dragon Inc as Dragon affiliated junkets by end of 2018. These junket operators will attract thousands of wealthy gamers to junkets operated by Dragon or the Dragon affiliated venues. Out of the more than $400 million to be raised, these junket operators have already committed US$265 million to the project, and this forms 53% of the total supply of Dragon Coins.