Macau’s gaming industry is expected to move into a new era in which casino operators will focus more on the non-gambling segments of their businesses, according to a leading player.
The fight will be no longer about expansion of the VIP business or adding space to host more gaming tables, the Hong Kong Economic Journal quoted Francis Lui, vice chairman of Galaxy Entertainment Group (00027.HK), as saying.
China’s continued anti-corruption crackdown, which has curbed mainland high-rollers, is prompting gaming firms to rethink their strategies.
Galaxy, which once had more market share than Sands China Ltd. (01928.HK) and was hot on the heels of industry leader SJM Holdings Ltd. (00880.HK), is tweaking its business model, according to Lui.
There will be increased focus on tourism and expo business, a move which will be also in line with Beijing’s policy goal, said Lui.
The company’s Galaxy II and Broadway Galaxy properties will commence operation by the end of May this year.
The two resorts, which together took in HK$43 billion investment, aim to provide 500 gaming tables.
Yet, the group’s plan for its Galaxy III project will be focused on the expo tourism market, with a landmark arena targeting the Pearl River Delta market being envisaged, Lui added.
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