Game table shortage puts Macau Melco Crown’s investors in hot water

When Melco Crown Entertainment decided to build another casino in the world’s largest gambling hub, there were many wealthy investors willing to invest in the $3.2 billion project in Macau, as past returns on investment always proved to be a safe bet. Studio City, a new project from the Melco Crown venture, seems to be a very profitable investment, especially as it is backed by Australian billionaire James Packer and Hong Kong billionaire Lawrence Ho.

The Macau government only recently confirmed the number of game tables sanctioned for the latest Melco Crown entertainment property, and many investors were disappointed that only 250 game tables were approved. Gaming authorities have approved 200 tables starting October 27 and 50 more to operate from January 2016. There will also be a total of 1,233 game consoles allowed to operate on the casino floor.

Investors initially expected about 400 game tables to be approved, and the fact that casinos are currently short of 150 tables makes the investment difficult to recoup. Investors are not so happy with the government’s decision to allow only 250 tables, raising a total of $1.4 billion in loans based on Standard & Poor’s Ratings. 카지노사이트 순

Things have changed dramatically over the past 15 months as Macau casinos face serious anti-corruption investigations as VIP gamblers from mainland China decide to stop visiting Macau. At the direction of the Chinese government, the Macau government has also tightened regulations on the gambling industry, expressing a change in priorities and a desire to change Macau’s image from a simple gambling hub.

Melco could transfer some of its unused tables from another casino to a new Studio City, but this seems highly unlikely because the hedge fund owns nearly 40% of the new Studio City casinos, so this move would not benefit Melco in the long run. Melco operates a total of 619 tables spread between Altira Macao Casino and the city of dreams. Melco has lost money over the past 12 months as gaming revenues in Macau decline and buyers, investors and shareholders at the new Studio City casino have to accept that the return on investment will be much smaller and slower than initially expected.

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