Casino operator Sands China announced on Monday the opening of its new segment The Parisian Macao on Sept. 13. The authorities have granted 100 new table games for its forthcoming operation, 25 in 2017 and a further 25 in 2018.
After 26 months’ negative posts, this August recorded the first year-over-year growth of 1.1 percent. “Given the current state of market-wide demand, The Parisian won’t miss a beat,” Sheldon Adelson, top leader of The Parisian.
Sands’ rival Wynn Macau opened its Wynn Palace last month. The government implemented the same quotas in three separate phases to the two operators. Wynn Palace was also approved to transfer about 250 tables in use from another resort.
The Secretary of Economy Leong Vai Tac stated, “The government would strictly control the new tables in the range of 3 percent within 10 years from 2013, when assessing applications for gaming tables.”
Macau’s six casino operators have languished in gambling revenues since 2013. According to the gambling bureau, revenues from VIP halls have shrunk by almost 30 percent in the past five years, while the mass market and slot machines kept expanding their contributions.
Analysts stay conservative towards the new projects, stating that the medium term still remains unclear and it would like to generate a disappointing return on investment.
Stephen Wynn, CEO of Wynn Macau, admitted it was hard to estimate the payback period. He said however Wynn Palace would shift its weight on non-gambling business and enhance the customer experience.