• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

The productivity ceiling

Sep 03, 2014 Newsdesk Uncategorized  


The productivity ceiling

Part of the margin story in Macau has been improving labour productivity, which has helped offset rising labour costs. Those gains in efficiency however are beginning to flatten out, suggest some analysts.

New York-based Telsey Advisory Group estimates that since 2005, Macau casino labour productivity has improved by 38 percent – being measured by head count per gaming table.

But analyst Christopher Jones added: “On the casino floor, there are limits to the ability to drive labour costs down.”

One common way is to increase volume of play and money crossing the table. That “drives up yields and leverage[s] the cost of the labour – to have dealers, pit managers and security for these tables,” he added.

The challenge in Macau however is that labour policies are different from Las Vegas, where operators can allocate their staff based on consumer demand, and thus control labour costs. That is “one of the many reasons you see fully-staffed tables in empty parts of the casino floor” in Macau, said Telsey’s analyst.

Technology could help offset labour expenses, namely the expanded use of electronic tables. These products can also allow operators to shift lower yielding play away from live tables and their higher operating overheads.

“We have seen this trend for a while, so one wonders how much more opportunity there is on this front,” said Mr Jones, adding that other solutions that might help dealers with table management are “likely years away from broad based adoption”.

With pressure mounting, the solution for Macau operators would probably be to work with labour groups “that support a more progressive labour policy in Macau,” said the analyst.

Telsey believes that allowing some level of non-resident workers into the ranks of dealers “is the best way to maintain social harmony in Macau”, while also providing a better opportunity for locals within the casinos.


  • tweet
Related articles
  • Macau visitor tally up 14pct m-o-m in February
    Macau visitor tally up 14pct m-o-m in...

    Mar 17, 2023  

  • Melco Resorts to buy 40mln of its shares from parent
    Melco Resorts to buy 40mln of its...

    Mar 09, 2023  

More news
  • The new games
    The new games

    Oct 02, 2014  

  • Bally-SHFL to launch new shuffler
    Bally-SHFL to launch new shuffler

    Aug 30, 2014  


Latest News

Philippines must strengthen junket AML controls: watchdog

Philippines must strengthen junket AML controls: watchdog

Mar 22, 2023  

Anti-money laundering (AML) controls in the Philippines’ casino sector need to be strengthened, says an analysis report by the country’s AML watchdog. The body pointed the finger at the junket...
Read More
Vietnam’s Hoiana says has several partners to bring biz

Vietnam’s Hoiana says has several partners to bring biz

Mar 22, 2023  

Jennifer Kartono named chief HR officer of Crane NXT

Jennifer Kartono named chief HR officer of Crane NXT

Mar 22, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”We are seriously considering the privatisation of all Pagcor-operated casinos”

Alejandro Tengco

Chairman and chief executive of the Philippine Amusement and Gaming Corp (Pagcor)



Most Popular

  • Macau GGR for March 1 to 19 at US$845mln: JP MorganMacau GGR for March 1 to 19 at US$845mln: JP Morgan March 20, 2023
  • Macau ops getting overseas visitors via private jets: reportMacau ops getting overseas visitors via private jets: report March 21, 2023
  • Universal Ent seeks to end SPAC deal for Okada Manila listingUniversal Ent seeks to end SPAC deal for Okada Manila… March 20, 2023
  • Let’s Win hosts grand opening for club at Hoiana in VietnamLet’s Win hosts grand opening for club at Hoiana in… March 20, 2023
  • Casino op SJM 2024 EBITDA to hit US$510mln: Moody’sCasino op SJM 2024 EBITDA to hit US$510mln: Moody’s March 22, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us