• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Thursday 10 July 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Macau To Cap Gambling Tables To Rein In Rapid Growth

Newsdesk by Newsdesk
Fri 26 Mar 2010 at 00:00
2
SHARES
56
VIEWS
Print Friendly, PDF & Email

HONG KONG (Dow Jones)–The Macau government won’t approve new casino projects and will only allow 500 additional gaming tables in the next three years, raising questions about operators’ major expansion plans.

The decision comes as the government, which currently draws around 70% of its revenue from gaming, seeks to diversify the city’s economy away from the gambling industry, with the goal of developing Macau into a popular leisure and entertainment destination.

At the moment, Macau has around 5,000 gambling tables and six licensed casino operators, some of which have projects under construction that could add around 1,300 tables by next year.

But Macau’s top gaming official, Francis Tam, told legislators Tuesday that the total number of tables will be capped at 5,500 until 2013, adding that all unapproved projects have already been halted to promote healthy and orderly development of the casino market as gaming revenue continues to soar.

“Those casino developments that have already been approved may continue to complete their construction,” said Tam, who is Macau’s secretary for economy and finance. “So within the next three years, casino tables will only reach 5,500.”

Tam said the casino industry’s development in the last few years has become much more orderly, with an annual growth rate of around 4%-5%, compared with much bigger increases in capacity from 2003-2006.

Even so, Tam’s comments come as Macau’s gaming revenue skyrocketed 66% in the first two months this year, according to media reports, raising concerns the city’s gambling market is expanding at an unsustainable pace.

The Chinese government has urged Macau’s leaders to cool the city’s gambling industry growth because of concerns that many mainland Chinese are gambling away their savings in Macau, the only place in China where casinos are legal.

Casino projects already approved include Galaxy Entertainment Group Ltd.’s (0027.HK) flagship project on Cotai, which will have 600 gaming tables, as well as Sands China Ltd.’s (1928.HK) expansion project that could add 700 tables, based CLSA estimates.

Both projects are scheduled to be completed by mid-2011, the casino operators have said.

But the math doesn’t add up with the cap in place unless operators scale down their plans for new tables or remove some of their current tables, raising concerns over how the government will be able to implement the policy cap fairly, casino industry watchers say.

They said there is confusion as to whether the additional table capacity will be allocated on a first-come, first-served basis, benefiting those who have built big early, or if the cap total will be divided evenly among the operators.

“We need a lot more clarity on the policy. It’s also unsettling for investors who may now be less willing to finance projects in Macau given the potential for policy changes like this,” said Sean Monaghan, managing director at AG Leisure Partners.

“There’s never been a cap before so it’s not going to be a level playing field for operators,” he said.

Galaxy declined to comment. Wynn Macau Ltd. (1128.HK) deferred request for comment to remarks in its 2009 earnings statement Wednesday. Melco Crown Entertainment Ltd. (MPEL), SJM Holdings Ltd. (0880.HK) and MGM Mirage (MGM) didn’t immediately respond to requests seeking comment.

In response to Tam’s comments, Sands China President Steve Jacobs told Dow Jones Newswires Thursday the company believes “the Macau government is sincere in its efforts to diversify and that it recognizes the integral part sites five and six play with regards to growth in hospitality, business, leisure tourism” and exhibition businesses. Sites five and six refer to Sands’ Cotai expansion project under development.
“We believe in the future of Macau and Sands China remains committed to working in partnership to help diversify the economy,” Jacobs said.

CLSA analyst Aaron Fischer said he would be surprised if Sands wasn’t able to complete its project because of the table cap. “I don’t know why the government would punish companies that are building projects that will attract the mass market and therefore have the potential to boost non-gaming revenue,” he said.

The Macau government said Thursday it had no further comment on Tam’s speech on Tuesday.

Tam’s statement to legislators Tuesday also suggests operators that have discussed plans to build on Cotai such as Wynn, MGM Mirage and SJM may not be given approval anytime soon.

Wynn Macau said in a statement accompanying its 2009 earnings it is awaiting approval from the Macau government to lease a plot of land on Cotai that would enable it to build an integrated casino and resort there.

RelatedPosts

Macau GGR hits new post-pandemic high of MOP$20.8 billion in October

Citi: Macau industry EBITDA likely to have grown by 3% in 2Q25

Thu 10 Jul 2025 at 05:46
Macau government says ratio of local staff employed by concessionaires in middle and senior positions now at 90%

Macau government says ratio of local staff employed by concessionaires in middle and senior positions now at 90%

Wed 9 Jul 2025 at 19:46
Macau’s 2025 visitor arrivals move past 20 million, 26 days earlier than last year

Macau’s 2025 visitor arrivals move past 20 million, 26 days earlier than last year

Tue 8 Jul 2025 at 14:47
Industry gathers for milestone Macau After Dark at Vasco – Bar and Lounge as MAD concept celebrates 30th edition

Industry gathers for milestone Macau After Dark at Vasco – Bar and Lounge as MAD concept celebrates 30th edition

Tue 8 Jul 2025 at 05:57
Load More

The planned table cap follows earlier efforts by the government to rein in fast growth of the gambling industry.

Last week, Macau Chief Executive Fernando Chui said the government will take steps to repossess any idle land being held by casino developers without concrete plans to develop it.

However, analysts largely wrote off the tough talk as political posturing, given complaints about rising property prices.

-By Kate O’Keeffe, Dow Jones Newswires; 852-2802-7002; kathryn.okeeffe@dowjones.com [ 25-03-10 1010GMT ]

Tags: Macau
Share1Share
Newsdesk

Newsdesk

The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

Current Issue

Editorial – An inconvenient truth

Editorial – An inconvenient truth

by Ben Blaschke
Fri 27 Jun 2025 at 15:21

It’s understandable that political observers, academics and members of the public in greenfield jurisdictions would express caution around the legalization...

Light & Wonder’s Siobhan Lane

Light & Wonder’s Siobhan Lane

by Ben Blaschke
Fri 27 Jun 2025 at 15:19

Siobhan Lane, Light & Wonder’s highly experienced CEO of Gaming, speaks to Inside Asian Gaming about the company’s ongoing transformation...

Honesty is the best policy

Honesty is the best policy

by Ben Blaschke
Fri 27 Jun 2025 at 14:13

The Thailand Entertainment Complex Roundtable brought industry stakeholders, politicians and supporters of the government’s Entertainment Complex Bill face to face...

Sri Lanka’s casino industry

Sri Lanka’s casino industry

by Shaun McCamley
Fri 27 Jun 2025 at 13:36

Industry veteran Shaun McCamley delves into the complex history of Sri Lanka’s casino industry at a time when the country...

Evolution Asia
Your browser does not support HTML5 video.
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
NWR
Jumbo
568Win

Related Posts

PhilWeb falls to US$10.5 million loss in FY24 on asset impairments

Century Entertainment signs joint venture agreement to develop gaming system platforms for Asia-Pacific markets

by Newsdesk
Thu 10 Jul 2025 at 06:22

Century Entertainment International Holdings Ltd has announced the formation of a joint venture with Philippines-based World Platinum Technologies Inc (WPT) with the goal of conducting research, development, marketing and sales of WPT’s gaming system platforms and related content in the...

Macau GGR hits new post-pandemic high of MOP$20.8 billion in October

Citi: Macau industry EBITDA likely to have grown by 3% in 2Q25

by Ben Blaschke
Thu 10 Jul 2025 at 05:46

Investment bank Citigroup believes the 8% year-on-year growth in gaming revenues generated by Macau’s casino operators in the June quarter will translate to 3% industry EBITDA growth – somewhat tempered by an unfavorable revenue mix due to a rebound in...

Thailand’s casino bill officially on hold after House votes to remove it from agenda

Thailand’s casino bill officially on hold after House votes to remove it from agenda

by Ben Blaschke
Thu 10 Jul 2025 at 05:42

Thailand’s controversial casino bill is officially off the House agenda after members voted in favor of its withdrawal on Wednesday. Local media outlet The Nation reported that the vote took place after two hours of debate, with 253 votes in...

Macau government says ratio of local staff employed by concessionaires in middle and senior positions now at 90%

Macau government says ratio of local staff employed by concessionaires in middle and senior positions now at 90%

by Pierce Chan
Wed 9 Jul 2025 at 19:46

Around 90% of the middle and senior staff of Macau’s six concessionaires are now local employees, the government has revealed. According to information made public by Secretary for Economy and Finance Tai Kin Ip during a plenary session of the...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • English