It was reported by local media that Studio City, Macau’s latest integrated casino resort, may be granted more gaming tables that the city government had initially promised.
The $3.2-billion luxury complex is developed and will be operated by Melco Crown Entertainment, a joint venture between Lawrence Ho’s Melco International Development and James Packer’s Crown Resorts. The developer is waiting a decision by Macau officials on the number of gaming tables the integrated resort would feature once operational. The venue is set to open doors on October 27. The government is expected to announce its decision in the weeks to come and prior to the opening ceremony.
Under a covenant included in the $1.4-billion loan that covers Studio City, the casino floor needs to feature at least 400 gaming tables. However, the government had initially announced that it would probably grant the resort an approval for no more than 150 tables.
This resulted in speculations that Melco Crown may pen a $1-billion deal with hedge funds owning a 40% stake in the casino complex in order to boost its operations and economics.
Two reports from local media from earlier this week stated that the integrated resort may eventually receive up to 250 gaming tables. According to one of the reports, Studio City would offer 200 tables upon opening and 50 more would be available by the end of the year.
According to the other report, the casino would feature 210 tables when it opens doors at the end of October and 40 more would be added by the end of 2015. Although Studio City would still be shy of the initially targeted 400 gaming tables, the 250 offering would probably appease investors who have expressed concerns about the resort’s early returns.
The anti-corruption campaign launched by Chinese President Xi Jinping resulted in a considerable drop in gaming revenue in Macau, which is the only Chinese territory where casino gambling is legal. The city government then decided to cap the number of table games featured at local casinos as part of a number of policies aiming at the introduction of a diversified tourism offering.
Local media also reported that Galaxy Entertainment may be granted 50 new table games in the weeks to come. What is more, the company may add 50 more tables by the end of 2015 or early in 2016. Analysts said that if true, this would be good for both Melco Crown and Galaxy Entertainment as the cap on the number of gaming tables has been among the biggest concerns for operators and their latest projects.
If reports prove to be correct, table games in the city would increase 8% from 2014. Thus, the annual cap of 3% would be exceeded. Analysts said that “the potential flexibility of table cap implementation” is indicative of the government being supportive of the local gambling industry.
