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Mariah Carey will headline a star-studded opening ceremony
for the Hollywood-themed Studio City resort, Melco Crown's third
in the southern Chinese territory, the only place in the country
where casino gambling is legal.
Studio City represents a break from the other 37 casinos
operating in Macau. It has no VIP baccarat lounges and will
focus instead on mass-market casual gamblers, in a sign of the
times for the world's largest gambling hub.
Macau's gaming revenues have slumped to around 4-year lows as
China's economic growth slows and a corruption crackdown deters
high-rollers. Studio City brings a new element to the city in
terms of non-gaming amenities, but analysts say its opening will
not change the industry's gloomy outlook.
"Until the macro situation is resolved, it is unlikely that new
property openings no matter from which operator will add
significantly to industry revenues," said Michael Ting, analyst
at CIMB Securities in Hong Kong.
Studio City is the second resort to open in Macau this year
after Galaxy Entertainment Group Ltd opened its Broadway casino
and resort extension in May.
Melco received permission to operate 250 gaming tables, more
than the 150 tables predicted by analysts but less than the 400
tables Melco had requested from the government.
Studio City's non-gaming elements were the main reason for the
allocation, said Lionel Leong, Macau's secretary for economy and
finance. The government granted Galaxy 150 tables earlier this
year and an additional 100 last week.
Since opening in May, Galaxy has grown its market share among
the six Macau operators, even though it posted a 29 percent
revenue drop for the third quarter.
Union Gaming analyst Grant Govertsen said Galaxy was benefiting
from strong growth in its mass segment, even though it remained
vulnerable to another slump in VIP revenue due to its reliance
on big-spenders.
Melco, by contrast, is more positioned towards the non-VIP
sector, a strategy its latest casino is set to reinforce.
(Reporting by Farah Master; Editing by Stephen Coates)
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