Competition in premium mass market heats up, Macau operators welcome RFID tables

In a recent note following meetings with senior management from all six casino operators, Goldman Sachs analysts revealed that the grind mass gross gaming revenue (GGR) remains approximately 10 per cent below pre-pandemic levels, in line with the ongoing visitation trend.

In the hope of capturing at least 20 per cent GGR market share, Galaxy Entertainment Group expanded its marketing team from 100 hosts to over 300 before the Chinese New Year holidays.

Additionally, Galaxy has introduced more competitive packages for high-end premium mass players, which has led to an increase in reinvestment rates of up to 5 percentage points – to 25 per cent.

Casino operator SJM Holdings has also expanded its marketing team from an initial 12 members to approximately 100, with plans to further increase it to around 200, aligning with those of MGM China Holdings and Wynn Macau.

Meanwhile, the management team at Sands China believes investing in hardware upgrades and products is a better long-term approach to maintaining competitiveness, such as the US$1 billion (MOP8 billion) investment for its Londoner Phase 2.

Catering to the needs of its premium mass customers, Melco Resorts and Entertainment is planning to renovate Countdown Hotel at City of Dreams, converting 325 existing rooms into 250-300 larger rooms or suites.

To attract a younger customer clientele, MGM now serves complimentary Lady M cakes on their premium mass gaming floor, in addition to bubble tea.

The analysts noted that the operators going for a more aggressive strategy by increasing their investment rates may face some margin pressure in their financial results. However, the outcome will also depend on the effectiveness of their marketing efforts and the actual GGR share shift.

According to the report, all casino operators in the city are planning to introduce RFID (radio frequency identification) tables in the coming months, with the aim of enhancing marketing efficiency and productivity.

While MGM has already been utilising RFID technology in recent years, the other five casino operators will start reviewing or preparing for the implementation of RFID tables in the coming quarters.

Melco will have its first batch of tables installed in its premium mass gaming area by the end of March, followed by Galaxy in the second quarter of this year and SJM in the fourth quarter.