MACAU TIDBITS

As always, much is happening in Macau.  Here is some of the stuff we’ve been hearing lately:

 

Macau Market

  • May was the first HK$ billion slot month
  • Wynn, MGM, and SJM Cotai sites may get gazetted as soon as in the next 4-5 weeks 

MPEL

  • Neptune will be opening a new VIP room at City of Dreams in July/August – Neptune is one of the largest junkets in Macau so this could be significant for MPEL
  • City of Dreams may be looking into converting its Dragon Dome Theater into a giant VIP operation – may be talking to the Guandong VIP Group to run it.  We think Guandong currently has operations at Wynn and Starworld.
  • MPEL may get rid of its dual management structure and leave Ted Chan fully in charge
  • City of Dreams pumped in some extra junket liquidity ahead of the Galaxy Macau opening
  • We still think Studio City might be back on the agenda possibly with MPEL investing in addition to procuring a management contract

Galaxy

  • Galaxy Macau may be cannibalizing 30-35% of Starworld’s VIP volume
  • We’re hearing that Galaxy may have pumped as much as HK$1.6-2.0 billion in liquidity to its junkets through the opening of Galaxy Macau

 LVS/Sands China

  • Neptune and Sun City are finalizing deals with Venetian Macau to open up VIP rooms
  • Staffing has been a problem so the rooms may not open until July/August
  • LVS still struggling to grow its VIP share
  • We’re skeptical that FS apartments will get approved anytime in the foreseeable future - the public airing of dirty laundry in the Jacobs case isn’t helping their cause