Galaxy Entertainment Group Ltd is “in the process of opening” its “first overseas business development office in Tokyo,” Japan, the Macau casino operator stated in its first-half results on Thursday.
The company added, referring to having representation also in the Thai and South Korean capitals respectively: “We are planning to open additional offices in Bangkok and Seoul.”
It stated: “This is in line with our commitment to the [Macau] government to… increase the number and flow of high-value international visitors to Macau.”
All six Macau gaming operators were required to make pledges to the Macau government – as part of their new 10-year gaming concessions that started in January – to work at expanding the number of overseas customers they bring into Macau, as well as to improve the amount and type of non-gaming products they offer.
Galaxy Entertainment has pledged for the duration of its concession, an overall fresh investment of MOP28.4 billion (US$3.52 billion), of which an estimated MOP27.5 billion – or 96.8 percent – will go toward spending on non-gaming and exploring foreign customer markets.
All the operators will be required to make over the course of their 10-year concession an incremental investment of as much as 20 percent of their initial pledge, if annual casino gross gaming revenue market-wide exceeds MOP180 billion.
In December, during a public presentation on Galaxy Entertainment’s reinvestment plans, the company mentioned “setting up overseas offices in Singapore, Thailand and South Korea and launching an array of marketing schemes, such as travel packages, in Japan, Indonesia, Malaysia, India, the Philippines and Vietnam”.
Galaxy Entertainment already has knowledge of the Japanese consumer market, having spent some time several years ago looking at the opportunity of investment in Japan’s nascent casino market.
But in May 2021, the group said it would not take part in Yokohama’s request-for-proposal (RFP) process concerning that Japanese metropolis’ search for a commercial partner for a casino resort.
Yokohama itself dropped out of the reckoning in September that year, after a casino sceptic was elected as prefectural governor.
Regarding Galaxy Entertainment’s foray via a Bangkok offiice, a number of investment analysts has already highlighted the popularity of casino gambling among Thais.
Thailand is currently mulling casino legalisation. Thais have historically formed a significant portion of the customers at a number of casino venues in Poipet, on Cambodia’s border with Thailand.
Oct 01, 2023Macau’s September casino gross gaming revenue (GGR) fell by 13.2 percent month-on-month, to MOP14.94 billion (US$1.85 billion), according to a Sunday announcement from the local regulator, the...
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