GGRAsia – Galaxy Ent to launch smart casino tables from July: Jefferies

Galaxy Ent to launch smart casino tables from July: Jefferies

May 16, 2024 Newsdesk Latest News, Macau, Top of the deck

Macau-based casino operator Galaxy Entertainment Group Ltd plans to start rolling out ‘smart’ casino tables at its casinos from July onwards. The news was provided by the firm in a conference call with investment analysts following it announcing its first-quarter results on Tuesday.

“Smart tables [are] to be launched from July onwards”, wrote brokerage Jefferies Hong Kong Ltd, in a note citing the key points discussed by Galaxy Entertainment’s management during the analyst briefing.

Analyst Andrew Lee added that smart table deployment at Galaxy Entertainment was to be “completed by year-end,” according to management.

The Macau authorities have been encouraging use of smart tables as a way for the city’s industry to manage more effectively casino operations. In that regards, several Macau operators have recently flagged plans to use radio frequency identification (RFID) gaming tables.

Ted Chan Ying Tat, Galaxy Entertainment’s chief financial officer, mentioned on his company’s February 28 call to discuss fourth-quarter earnings and the firm’s outlook for the coming trading periods, plans for rollout of RFID-enabled gaming technology.

He stated at the time: “RFID… will contribute to a lot of improvements in effectiveness and efficiency of the gaming floor as well as the integrity of the floor. We’re already starting the process, and we are planning to launch out all these technology-related initiatives during the year.”

Galaxy Entertainment’s main gaming operations are at Galaxy Macau in Cotai and StarWorld Hotel in downtown Macau peninsula.

Analyst Vitaly Umansky of Seaport Research Partners said in a note on Galaxy Entertainment’s Tuesday conference call that the casino operator “should see smart digital tables begin utilisation by year-end and into early next year.”

Galaxy Entertainment reported mass-market gross gaming revenue (GGR) down slightly quarter-on-quarter in the three months to March 31, but VIP GGR was up nearly 43 percent sequentially, albeit from a much lower base than in pre-pandemic trading.

The company reported first-quarter adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of nearly HKD2.84 billion (US$362.9 million), up 48.7 percent year-on-year, and up 1.0 percent quarter-on-quarter.