The value of companies being plugged into mainland China’s decision-making machinery has been dramatically illustrated over the Macau gaming table quota issue.
A senior industry executive told Asian Gaming Intelligence that the 5,500 table limit for the Macau market between now and the end of 2012 announced by the Macau government has come about because of back room manoeuvring.
“It happened because SJM formed an understanding with the [Chinese] central government that it [SJM] is guaranteed a minimum of 1,700 tables in the market. That’s left everyone else having to scramble for quota,” said the source.
If correct, that would suggest the market is being engineered to ensure SJM—a Chinese owned and operated company–maintains its market share lead, which stood at 33% of gross revenue in April.
According to the DICJ, Macau’s gaming regulator, there were 4,811 gaming tables in the Macau market in the first quarter of this year. If tables were allocated in proportion to current market share then SJM would have a maximum quota of 1,586.
Dr Stanley Ho, the Chairman of SJM, has for many years been a member of the standing committee of the Chinese People’s Political Consultative Conference, the advisory body to the leadership of the People’s Republic of China.
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