Macau casino operators welcome new tables but analysts fear oversupply

Macau casino operator Melco Crown Entertainment’s new Studio City resort could be allotted more gaming tables than expected, but not everyone’s convinced that’s a good idea.

Until recently, expectations were that the movie-themed Studio City (pictured) would be allotted only about 150 new gaming tables when it opens on Oct. 27. That’s the same number of tables that Galaxy Entertainment Group’s Galaxy Macau Phase 2 received when it opened this spring.

Both casino operators had expected 400 or more new tables apiece but Macau’s government said it was sticking to its plan to allow only 3% compound annual growth in the total number of gaming tables until 2022. Not shy about expressing his dismay, Melco Crown CEO Lawrence Ho had warned that his company would rethink its future commitment to non-gaming amenities if it didn’t get a sufficient number of new tables.

Late last week, multiple analysts began reporting rumors that Studio City would receive between 200 and 210 tables when it opened and a further 40 to 50 tables before the year was through. Daiwa Securities also reported that Galaxy was in talks to receive 50 more tables this year plus another 50 early in 2016, putting its Phase 2 on par with Melco Crown’s new allotment.