The partial smoking ban that went into place this month has yet to have a material impact on Macau casinos. Average Daily Table Revenue (ADTR) was HK$775 million this past week, in-line with the prior week and well below the first two weeks of the month. The pre-Chinese New Year timing is also a factor in the decline in ADTR.
We expected the smoking ban to play a significant role in revenue but it has yet to do so. Since January 1st, 9000 people have been fined for smoking in public areas. The partial smoking ban allows casinos to have smoking areas in up to 50% of the gaming floor area. The rules do not set up a minimum ratio for the number of slots and tables to be included in smoking and non-smoking area.