Macau Casino Magnate Lui Che Woo Dies at 95
On Nov. 11, Macau gaming concessionaire Galaxy Entertainment Group (GEG) announced the passing of its founder and chairman Lui Che Woo. Lui died on Nov. 7 at age 95.
In a statement, GEG lauded Lui’s “vision, tremendous leadership and guidance” in building one of Macau’s Big 6 gaming companies after the jurisdiction opened to global investment in 2002.
Reuters described Lui as a “casino tycoon who helped propel Macau to eclipse rival Las Vegas in gambling revenues.” He ranked alongside such visionaries as Sheldon Adelson of the Las Vegas Sands Corp., Stanley Ho of SJM Holdings and Steve Wynn of Wynn Resorts.
Incoming Macau Chief Executive Sam Hou Fai called Lui “a highly respected entrepreneur and philanthropist … (We) commend him for his significant contributions to the appropriate and diversified development of the Macau economy over the years.”
The Straits Times estimated Lui’s net worth at S$19.4 billion (US$14.5 billion), making him one of the richest people in Hong Kong.
Philippine President: POGO Ban ‘Sufficient’ to Oust Illicit iGaming
In July, Philippine President Ferdinand Marcos Jr. banned Philippine Offshore Gaming Operations, or POGOs, which became notorious for running online scams. On Nov. 5, Marcos officially signed Executive Order 74, ordering all POGOs to exit the country by Dec. 31. But he rejected calls from some lawmakers to enshrine the ban as law, calling the EO “sufficient” to deter future illicit operations.
In a news release published by the Philippine News Agency, Marcos said the order would help “safeguard national security, maintain public order, uphold the rule of law, protect the safety of its citizens and ensure the integrity of the social fabric of the nation.”
However, Sen. Risa Hontiveros, chair of the committee overseeing POGO hearings, is concerned about loopholes that may allow POGOs to return. According to the Philippine Inquirer, Hontiveros is concerned that some casinos or special economic zones may have leeway to partner with offshore gambling companies.
Sen. Sherwin Gatchalian, a longtime critic of POGOs, has sought to repeal legislation that taxes POGOs, to ensure they don’t return in any form under a future administration.
In September, he told the Manila Bulletin, “We will continue (trying to) repeal the taxation of POGOs, even if the EO comes out … This (EO) will not prevent the revival of POGO operations in the country.”
Analysts Maintain ‘Buy’ on Genting Singapore, Despite Q3 Drop
On Nov. 7, Genting Singapore, operator of Resorts World Sentosa (RWS), announced third-quarter net profit of S$79.4 million (US$59.4 million), down from S$216.3 million during the same period in 2023. Revenue for the quarter was S$562 million, tumbling 19 percent from last year.
It’s a significant shift from the first half. According to the Malaysia Star, the subsidiary of Genting Berhad delivered net profit of S$460.2 million, up almost 42 percent year on year, exceeding analysts’ consensus. In August, Hong Leong Investment Bank (HLIB) said GenS “should continue its positive recovery momentum benefitting from recovery in foreign tourist arrivals in Singapore, particularly from Chinese tourists.”
The Malaysia-based parent attributed the results to a decline in VIP patronage, especially Chinese high rollers. Responding to the third-quarter results, HLIB trimmed GenS stock target to S$1.22 from S$1.45 and cut respective 2024-26 earnings projections by 26 percent, 24 percent and 24 percent.
Even so, the brokerage maintained a buy rating on the stock, and expressed optimism for 2025. Maybank Investment Bank also kept a buy on the stock, while cutting its target price and downgrading 2024-26 profit forecasts.
RWS is now building a S$6.8 billion waterfront development that will add two new luxury hotels. It just opened a Harry Potter interactive art experience, and will debut Minion Land at Universal Studios Singapore in the first quarter of 2025.
SJM Posts HK$101M Profit in Q3
On Nov. 12, SJM Holdings Ltd. released third-quarter financials. One of Macau’s Big 6 gaming concessionaires, SJM posted a third-quarter profit of HK$101 million (US$13 million), compared to a HK$410 million loss in the same quarter last year. Net gaming revenue came to HK$7 million. Adjusted EBITDA was up 83.2 percent year-on-year to HK$1.04 billion.
According to Macau Business, the Hong Kong-listed company’s gross gaming revenue (GGR) market share also increased from 12.1 percent to 13.9 percent for the 2024 quarter.
SJM credited the growth to strong performance of Grand Lisboa Palace Macau (GLP) in Cotai. GLP’s market share rose from 1.7 percent in the third quarter of 2023 to 2.6 percent this year. driven by a significant increase in both gaming and non-gaming spend.
As SJM Chairwoman Daisy Ho noted, “The unfolding potential of the Grand Lisboa Palace Resort, as its ramp-up underscores the group’s strong recovery from challenging times to renewed growth.”
In Q3, Galaxy Entertainment Posted 11 Percent Net Increase
For the third quarter of 2024, Macau casino concessionaire Galaxy Entertainment Group (GEG) recorded net revenue of HK$10.7 billion (US$1.38 billion), up 11 percent year-on-year, but down 2 percent from the previous quarter.
Adjusted EBITDA rose 6 percent year on year to HK$2.9 billion, but “played unlucky” for the quarter, down 7 percent.
The company said robust Golden Week visitation in Macau is a predictor of a strong fourth quarter. Macau recorded a total of 993,117 visitor arrivals for the national holiday that begins Oct. 1. The daily average number of visitor arrivals during the seven-day period reached nearly 102 percent of 2019 levels. Macau hotels’ average guest room occupancy stood at 95 percent during the period.”
According to a breakdown by Macao News, net revenue by property was HK$8.4 billion for Galaxy Macau; HK$1.3 billion for StarWorld Macau; and HK$62 million for Broadway Macau.
GEG said it’s working to draw more international tourists, opening “overseas business development” offices in Tokyo, Seoul and Bangkok.
Vietnam Locals Casino Pilot to Continue through December
A pilot program testing the efficacy of locals gaming in Vietnam will continue for six more weeks. The trial began in 2019, was interrupted by Covid shutdowns, and then was extended in 2022. According to VnExpress, on Nov. 4 the program was extended once again to the end of December.
According to the decree, at the end of the trial period the Ministry of Finance will work with the ministries of public security, planning and tourism to “review and decide on terminating or continuing to allow Vietnamese to enter casinos.”
