White label solutions



Asia Casino News │ ACN东方博彩新闻

Asia Casino News outlet for Online Gaming and Gambling Industry in Asia.

Image Source Asian Gaming Brief

Galaxy Entertainment and MGM China Adapt to Fierce Competition

April 18, 2024 Macau Industry Updates

During the HSBC Global Investment Summit 2024 held in Hong Kong, Galaxy Entertainment and MGM China, two of the biggest names in Macau’s booming gaming industry, talked about business dynamics in the face of growing competition.

Both operators acknowledge that the competitive environment is “”intensifying,”” but they think it is “”manageable,”” according to HSBC’s investment note. All business segments—especially VIP—show positive trends, although volatility is still a worry.

Based on encouraging signs, both groups indicate that length of stay and average spending per trip at their hotels surpassed 2019 benchmarks.

MGM notes a rise in travel frequency after COVID-19, but Galaxy’s numbers are somewhat below pre-pandemic levels even with no issues with visas.

Due to the abundance of non-gaming activities, both operators expect a return of passengers to Macau, which will counteract seasonality trends.

Operators anticipate buffering advantages from operational leverage as top-line growth continues, allaying concerns about margin erosion in the high-end mass segment due to growing competition.

Following a good January performance, market share dynamics indicate MGM is stabilizing in the 15–17 percent range, which is in line with the company’s strategic objectives.

MGM’s bold plans include updating its Peninsula location and adding 28-suite villas the next year. In response to the industry’s robust GGR surpassing the MOP180 billion ($22.4 billion) threshold in 2023, the company also plans to expand its non-gaming investment commitments by 20% to $2.3 billion.

A hotel tower in Cotai targeted at high-end mass consumers is also under construction; however, no timeline has been set since planning is underway.

In the meantime, Galaxy Entertainment is recalibrating its strategy in response to shifting market conditions. Although the mid- and lower-end mass markets saw good growth, a decline in the premium mass market share led to contemplation after casino floor improvements.

As a result, efforts to enhance host capabilities and raise reinvestment rates are still ongoing. With smart table modifications planned for completion by 4Q24, suggesting a proactive approach to boosting market share trajectory, the initial traction in February and March suggests early success.

Original Story by: Asian Gaming Brief

Leave a Reply

Your email address will not be published. Required fields are marked *