Govertsen: “Galaxy under-supplied”
After the last of the new casinos opens next year on Macau’s Cotai Strip, Macau’s Gaming Inspection and Coordination Bureau will have 482 remaining tables in its inventory, according to a report from Union Gaming Asia Securities.
“Under the assumption that SJM also gets an initial batch of 100 tables for Grand Lisboa Palace in 2019, and that the government allocates ‘catch-up’ tables to MGM and SJM after the license situation is finalized, this would leave 482 tables in the government’s inventory,” wrote Union Gaming analyst Grant Govertsen.
In 2012, the government introduced a 3 percent cap on new-to-market gaming tables that will last until 2022. According to Inside Asian Gaming, Govertsen estimates that the 5,500 tables operating in Macau in 2012 means up to 1,892 new tables could be issued through 2022.
Presently, just 1,235 tables have been allocated, leaving 657 still available. Assuming SJM gets 100 and MGM and SJM get another 75 tables combined by 2020, 482 tables will remain.
Galaxy Entertainment Group would welcome more tables for Phases III and IV of Galaxy Macau, IAG reported. Due to start opening late next year, the additions will add 4,500 hotel rooms as well as more gaming space.
“In a nutshell, Galaxy is under-supplied in terms of room count and the addition of more room product will be a material driver of earnings for the company over the medium and longer terms,” Govertsen said. “The fact that Galaxy has so much developable land is one of the reasons we remain bullish on shares.”
