Good news in wake of table cap
The results of a new study by Union Gaming Research Macau Ltd. indicates that electronic table games, once considered a lesser version of games with live dealers, may actually produce better win per table per day, and better margin on EBIT (earnings before interest and taxation) than traditional mass-market live dealer tables.
According to GGRAsia, which reported on the study, the results have sparked a lot of interest among operators. Casinos that bank on Chinese VIPs and mass-market players for their livelihood would welcome any games that serve up good margins, incur fewer labor costs and result in a better hold percentage.
But while those factors could make ETGs more desirable to casino operators throughout Asia, the costs of installing new technology may not result in an immediate run on ETGs.
However, wrote Union Gaming analysts Grant Govertsen and Felicity Chiang, “Looking ahead, and in the contexts of: 1) the market-wide tables game cap in Macau; 2) a tight labor market, and; 3) an ever-more expensive labor market, we think all Macau operators will continue to look at ETGs as an increasingly attractive option.”
According to the city’s casino regulator, revenues in Macau market from Live Multi Games, a form of ETG, have increased by about 150 percent from MOP895 million (US$112 million) in 2012, to nearly MOP2.26 billion in 2014.
The information could help as the Macau government enforces a 2013 cap on the number of live dealer tables allowed in local casinos. The government permits more ETGs and LMGs on local casino floors.
