Union Gaming analyst Grant Govertsen has predicted both The Parisian and MGM Cotai to likely receive an allocation of 250 new-to-market gaming tables when they open their doors in the coming months, avoiding to the fate that has befallen Wynn Palace.
Macau’s DICJ announced last week that Wynn Palace, which will officially open for business next Monday, would be granted just 150 new tables including only 100 in time for opening. The decision is based on Wynn’s failure to adequately follow the government’s mandate for more family entertainment and non-gaming offerings, with both Galaxy Phase 2 and Studio City having previously received 250 new tables each.
Govertsen believes none of the other properties still due for launch will face the same problem.
“As it relates to the Parisian … no operator has historically focused more on non-gaming and family-style entertainment than Sands China and we think Parisian will be no different (not to mention it is bringing online ~3,000 hotel rooms that are not 5-star, as we believe the government wants more affordable rooms in market),” he said.
Wynn Palace will open with just 100 new gaming tables next week
“As it relates to MGM Cotai, we don’t know what’s planned as far as the total package of non-gaming amenities and local SME support is concerned, but we do recognize that the company has a few quarters to get everything buttoned down before applying for a table grant when they open.”
Parisian will open its doors on 13 September while MGM recently delayed its opening to Q2 2017.
Nevertheless, Govertsen said there was still room for Wynn Palace to be granted more tables in the future should they provide more relevant attractions.
“Based on our math, the government will have 947 table games remaining under the table cap first announced in 2012,” he said.
“Under the assumption that Parisian Macao, MGM Cotai, and Grand Lisboa Palace each get 250, this would leave the government with 197 tables in its pocket that could be granted (or not granted) as it sees fit. Based on the above criteria, it stands to reason that at some point Wynn Palace could, as part of a future capex refresh project, check more boxes as it relates to family-style non-gaming and on-property SME support.”
