Seaport: Smart table rollout to equalize Macau operators

Macau’s rollout of smart tables over the next six to nine months will level the playing field for concessionaires and improve both operational and marketing capabilities, according to brokerage Seaport.

Seaport’s senior analyst, Vitaly Umansky, highlighted the significant impact of smart table technology on the gaming sector in a recent dispatch. He noted that this technology will streamline casino operations, reduce human error, and provide valuable data insights. Smart tables, equipped with advanced sensors and digital interfaces, allow for real-time tracking of game results, player behavior, and betting patterns.

A gaming analytics expert told AGB that by the end of 2025, all major properties in Macau, the Philippines, Australia, and New Zealand are expected to adopt some form of smart table technology, primarily for Baccarat due to its ease of implementation compared to other games.

Macau’s casino industry is undergoing a significant transformation as operators roll out digital or smart tables in response to shifting market dynamics and the collapse of the junket VIP business. According to Seaport, since 2019, the overall gross gaming revenue (GGR) market in Macau has notably shifted, with a decrease in VIP gambling and an increase in premium mass gaming. In 2023, the business mix continued to evolve, leaning more towards premium mass gaming and less towards base mass gaming.

Looking ahead, the market is expected to see further shifts driven by new capacity coming online, changes in mass market configuration, enhanced marketing efforts by operators, and the deployment of digital table operations. The brokerage expects that the rollout of digital tables over the next six to nine months will level the playing field among operators and bring about improvements in both operational efficiency and marketing capabilities.

MGM China was described by Seaport as being particularly successful in leveraging these changes. The company’s GGR share surged from 9.5 percent in 2019 to 15.3 percent in 2023, and further to 17.2 percent in the first quarter of 2024. MGM’s recovery was attributed to several key factors, including the expansion of its marketing team and efforts focused on the premium mass segment during the COVID-19 pandemic, while other operators were cutting costs. Additionally, MGM was the first to market smart digital tables from Walker Digital, maximizing the operational and marketing benefits of this technology. The company also received 200 extra tables during the concession rebidding process.

Streamlining player reinvestment decision-making and redeveloping the Cotai casino to make it more appealing have also been significant contributors to MGM’s success. However, the company is now anticipated to be the largest “share donor” as other operators ramp up their marketing and utilize smart tables, negating some of its recent advantages.

Melco Resorts & Entertainment is expected to benefit from the adoption of smart digital tables, much like MGM, with the company’s focus on analytics and strategic marketing enhanced by the data and marketing tools provided by digital tables. Over the next one to two years, Melco’s critical drivers will include driving renewed premium performance at City of Dreams and ramping up Studio City with the Phase 2 expansion, the research adds.

Galaxy Entertainment Group is forecast to gain market share in 2024 and 2025, following a first-quarter “misstep” that led to marketing changes now yielding positive results. The ramp-up of Galaxy Macau’s expansion and the recovery in base mass gaming, where Galaxy has a competitive advantage, are key factors in this growth. Galaxy has been proactive in acquiring smart digital tables, which are currently being installed and will be fully operational by early next year. This aggressive implementation will help Galaxy compete more effectively in the market, following the successful adoption of digital tables by MGM.

Sands China is expected to face a challenging year in 2024, but market share is forecast to increase in 2025. SJM Holdings, with the ramp-up of the Grand Lisboa Palace, is also forecast to gain market share in 2024 and 2025, though at a slower pace than typical new properties. While the Grand Lisboa Palace will gain share, this will be offset by a share loss on the peninsula. SJM has also invested in smart digital tables, which should be fully operational in the first half of 2025. The efficiency with which management can leverage this technology to maximize results remains to be seen, as Seaport described.

Original Story by: AGB