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Post by Blitz on Mar 21, 2024 5:29:53 GMT -5
Macau wants to track foreigner casino spend by country. They tried foreign only zones inside casinos that did not work. RFID chips will be used to track casino spend instead. If they can track punters by country, they can track individuals too. Xi will like that capability for awarding 'social credit points' to their player cards... which I'm sure Chinese players laundering their cash will want make good use of...  And now this... Morgan Stanley: Macau operators to recoup RFID table game investment within a year Ben Blaschke Wed 20 Mar 2024 at 06:38 www.asgam.com/index.php/2024/03/20/morgan-stanley-macau-operators-to-recoup-rfid-table-game-investment-within-a-year/Macau’s operators can expect it to take around six months for the basic functions of newly installed RFID smart table technology to be fully optimized but should expect full return on investment within a year, according to a new report by investment bank Morgan Stanley. The use of RFID tables to monitor play has been rapidly gaining traction in recent months with multiple concessionaires confirming during recent analyst calls that they are either in the process of, or planning to, install smart table technology in the coming months. Such utilization has reportedly been accelerated as a result of certain tax breaks dangled by the government on gaming revenues earned through players from outside Greater China, with RFID seen as an accurate means of measuring such activity. Only MGM, which installed smart table technology as far back as 2018, is currently using RFID to track chip movements. In a note following a recent visit to Macau, Morgan Stanley analysts Praveen Choudhary and Gareth Leung said the hype over smart table technology is real with RFID aiding game integrity, providing for a faster game and higher win rate, assisting in the identification of foreign customers and providing increased variety of games and more data to analyze. However, they noted that it will take some time for MGM’s competitors to fully optimize their systems once installed, suggesting MGM’s edge could remain at least until end-2024. “According to our industry sources, after installation of RFID/Smart tables, it takes ~6 months for the basic functions to be fully utilized/optimized … it may take longer depending on how the operators use this technology,” Morgan Stanley wrote. “We learnt that casinos get their money back within 12 months on the hardware investment.” Noting that the “RFID hype train is on,” Choudhary and Leung added, “Most of the Macau concessionaires have ordered smart tables and should be getting them installed over the next 12 months. MGM China was the early adopter in this – it started using this technology in 2018 – but [wider use has been] encouraged by the government and there are some proven benefits as well.” According to Morgan Stanley, MGM China’s mass table win rate has improved by 500bps since 2018 based on 4Q23 numbers, which is likely in part due to the technology. “Other benefits of RFID/Smart Tables tech include lower staff costs (fewer pit managers/supervisors needed) and data availability of unrated gamblers,” the investment bank said. “More importantly, they can accurately identify foreigner gamblers, which get a 5% tax rebate and are encouraged by the government. Investment in RFID/Smart Tables tech could potentially be counted in committed investment.” Melco Resorts, Galaxy Entertainment Group and SJM Resorts have all confirmed in recent weeks that they are in the process of putting RFID technology into use on their casino floors. |
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Post by Blitz on Mar 21, 2024 5:36:15 GMT -5
CASINOS’ FOREIGNER EXCLUSIVE ZONES NOT POPULAR AMONGST GAMBLERS: HORNBUCKLE - THURSDAY, MARCH 21, 2024 - 10 HOURS AGO NO COMMENTS 983 VIEWS macaudailytimes.com.mo/casinos-foreigner-exclusive-zones-not-popular-amongst-gamblers-hornbuckle.htmlThe introduction of private rooms was suggested by the Macau government, who encouraged casino operators to create foreigner-only gaming zones within their casinos to appeal to global clientele and compete with destinations like Las Vegas and Monte Carlo. However, Bill Hornbuckle, the CEO and president of MGM Resorts, revealed that these foreigner-only gaming areas have not been well received by their intended audience, Inside Asian Gaming reports. Instead of pursuing foreigner-only zones, MGM Resorts have opted to implement a program known as the “chip-in-chip program” to monitor the usage of every chip on the gaming floor. Hornbuckle shared this insight during the J.P. Morgan Gaming, Lodging, Restaurant, and Leisure Management Access Forum last week. Hornbuckle explained that this initiative has been in place for several years to ensure accurate tracking of all the chips in circulation. He mentioned that one of the key benefits of this program was the elimination of errors in the game, as it provided clear visibility on where labor should be allocated. Additionally, there were several other advantages on the back-end, including improved accounting and financial processes. Regarding the foreigner-only gaming zone, which was introduced as part of the new gaming law enforced in early 2023 and which allowed casino operators to enjoy a 5 percent levy exemption, Hornbuckle stated that some international gamblers were not attracted to the idea of being isolated in separate rooms. To effectively track the activities applicable to this different tax bracket, the casino operators were required to create independent private rooms. However, customers did not appreciate being made to gamble in separate areas, which was seen particularly unfavorably by visitors from Thailand.When the new policy was announced in 2022, Secretary for Justice and Administration Andre Cheong, also the spokesperson for the Executive Council, had already emphasized that foreign punters would have the opportunity to use a different type of gambling chip, signaling an attempt to accommodate their preferences. Casino operators, as part of their licensing agreements, have also committed significant investments to reshape Macau’s skyline and enhance its non-gambling amenities, aiming to transform it into a more universally appealing leisure destination. Staff Reporter |
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Post by Blitz on Mar 21, 2024 5:40:22 GMT -5
Chief Executive confirms 12 foreigner-only gaming zones now open in Macau’s casinos by Pierce Chan Wed 19 Apr 2023 www.asgam.com/index.php/2023/04/19/chief-executive-confirms-12-foreigner-only-gaming-zones-now-open-in-macaus-casinos/Macau’s integrated resorts now boast a combined 12 foreigner-only gaming areas, Chief Executive Ho Iat Seng said Tuesday. Speaking at a press conference at the Hong Kong-Zhuhai-Macau Bridge before he departed for Europe, Ho responded to questions about the foreigner-only areas, which were recommended by the government in December as a means of calculating gross gaming revenues generated from international players. The government has also promised tax breaks of up to 5% on international GGR as a means of encouraging operators to increase their efforts in this area. “The six gaming operators have established a total of 12 foreigner-only areas,” Ho said. “The operators are also sending private planes to bring clients to Macau, and the government has provided good airport services in this regard.” He added that while Macau is still lacking when it comes to the provision of international air routes, this is not yet a significant issue for Macau as many other countries have yet to resume international flights at pre-pandemic levels. Among the integrated resorts where foreigner-only gaming zones are known to exist are The Londoner Macao, The Venetian Macao, MGM Macau, MGM Cotai, City of Dreams, Studio City, Grand Lisboa Palace and Galaxy Macau. Meanwhile, Ho said the government has not changed its previous GGR forecast of MOP$130 billion for Macau in 2023. “It is very likely that this year’s gross gaming revenue will reach MOP$130 billion (US$16.1 billion), but this revenue will still be in deficit,” he said. |
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Post by Blitz on Mar 21, 2024 5:48:13 GMT -5
Macau industry reps insist foreigner-only gaming zones have failed Pierce Chan Tue 19 Mar 2024 at 04:27 www.asgam.com/index.php/2024/03/19/macau-industry-reps-insist-foreigner-only-gaming-zones-have-failed/Dedicated foreigner-only gaming zones were launched in Macau’s casinos in early 2023 following a directive from the SAR Government, but their effectiveness has been questioned with industry representatives describing them as a “failure”. They have also noted that chip tracking technology appears to be sufficient for keeping track of foreign play, echoing comments made by MGM Resorts CEO and President Bill Hornbuckle late last week. The concept of foreigner-only gaming zones were first proposed by the Macau government at the end of 2022, with the initial goal of encouraging concessionaires to put more effort into attracting foreign tourists to the city. As an incentive, the government said at the time it could reduce taxes on gross gaming revenues by up to 5% for revenue generated from foreigners. However, the effectiveness of the zones was questioned by Hornbuckle during a JP Morgan investor event last Friday, with the MGM CEO stating that a recent move by other Macau casino operators to implement RFID technology to better track play on their gaming floors was at least in part due to the failure of foreigner-only gambling zones to gain traction with players. “The customers didn’t like it, but the one thing [MGM’s] ‘chip in chip’ technology enabled us to do, and we got a huge head-start on this, was let people go anywhere they want in the casino because we can track their every move and their every play,” he said. Macau junket operator U Io Hung told Inside Asian Gaming that “no gambler likes to be trapped in one place. “The casino now keeps a record of every chip and table, and everyone’s bets can be tracked, making the establishment of a dedicated area superfluous,” he added. “There are foreign gamblers now, but they are fewer than Chinese gamblers, and the number of people who go to the foreigner-only zones is even smaller.” Speaking at a press conference in November, Macau’s Chief Executive, Ho Iat Seng, was asked about the progress of the zones but replied that the government would not release data on foreigner play. “The concessionaires have submitted the data to the government, but the data involves commercial practices, so the government will not release it,” he said. Lam U Tou, a member of the Legislative Assembly who voted against the new gaming law, has questioned the decision not to make such data public. “It is unreasonable not to publish the data, and if this data is not published, how can the community implement the monitoring of the government’s tax enforcement?” he asked. “Macau’s GGR is published monthly, and detailed data is published quarterly, but this is not public.” As for the foreigner-only zones themselves, Lam said, “The gaming industry has reflected that not many foreign gamblers actually enter this gaming area. “There are Chinese people with foreign passports who come to the gaming area, but very few foreign tourists actually come to the gaming area.” He added, “The government has proposed this formula, now it needs to account for the results, no matter whether the results are good or bad. It is necessary to disclose the data.” According to figures released by the Statistics and Census Service, Macau welcomed 28,213,003 visitor arrivals in 2023, although only 1,459,566 were foreign visitors – representing just 5.17% of the total. “I have always supported the government to attract foreign visitors – not by using this 5% tax but by improving the overall infrastructure support and tourism industry to attract foreign visitors,” Lam said. |
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Post by Blitz on Mar 24, 2024 7:43:08 GMT -5
When government tells successful businesses how to 'manage' for better 'efficiencies' it's a head scratcher. Government is not known for either, except when trying to raise taxes... And now this... Regulator urges Macau casinos to implement ‘comprehensive’ management via technology Viviana Chan - March 18, 2024 agbrief.com/news/macau/18/03/2024/regulator-urges-macau-casinos-to-implement-comprehensive-management-via-technology/In a recent meeting with Macau gaming operators, the casino regulatory body in Macau, the Gaming Inspection and Coordination Bureau (DICJ), urged them to update their monitoring systems on the gaming floor. The aim is to implement ‘comprehensive management through technology’. In this context, DICJ mentions the installation of smart gaming tables, which can improve the efficiency of casino operation and management, and cooperate with the further development of e-government. In a meeting memo shared on DICJ’s social media account on WeChat, DICJ mentioned that the parties discussed e-governance and explored the potential and difficulties of cooperation in technology and the scope of data transmission in smart policing, smart surveillance, and casino monitoring. Currently, all the gaming companies in Macau plan to install RFID (Radio Frequency Identification) tables in the coming months to improve marketing efficiency and productivity, while MGM China adopted this kind of smart tables in 2016. DICJ and Macau Judiciary Police have discussed security issues during large-scale events held in Macau. The city’s police have requested gaming companies to deploy additional staff to coordinate security, especially at entrances and exits of venues and locations where people are concentrated, to ensure the safety of participants and the smooth running of activities. In the same memo, Macau authorities said that they have been working to combat illicit money exchange businesses. According to data provided by DICJ, a total of 2,302 people were banned from entering casinos in Macau, and the police also submitted a total of 1,468 people who were caught engaging in money exchange businesses in Macau. |
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Post by Blitz on Mar 27, 2024 5:45:41 GMT -5
Macau government confirms it wants concessionaires to use RFID technology on gaming floors by Pierce Chan, Wed 27 Mar 2024 at 05:23 www.asgam.com/index.php/2024/03/27/macau-government-confirms-it-wants-concessionaires-to-use-rfid-technology-on-gaming-floors/Macau’s Secretary for Economy and Finance, Lei Wai Nong, confirmed Tuesday the government is encouraging Macau’s concessionaires to use RFID technology to calculate the betting turnover of foreign gaming customers. The Macau government announced at the end of 2022 that Macau’s concessionaires can receive a tax deduction of up to 5% on gross gaming revenues if they successfully recruit foreign gamblers. The government has also enacted legislation to regulate the matter. Initially, concessionaires had established dedicated foreigner-only gaming areas to facilitate the calculation of betting turnover from international customers. However, MGM Resorts CEO and President Bill Hornbuckle recently revealed that these zones had failed to appeal to the foreign customer base. At a Legislative Assembly (AL) meeting on Monday night, Legislative Council member Ron Lam asked Lei about the issue of foreign gamblers. In response, Lei confirmed that the government was encouraging concessionaires to establish RFID gaming on their casino floors. “The government is also installing relevant equipment to facilitate the calculation of bets placed by foreign bettors,” he said. “The government will monitor and approve the system.” Most Macau concessionaires are already in the process of installing smart table systems, although MGM is well ahead of the game after putting the technology into play as early as 2018. IAG understands that five of Macau’s six concessionaires will utilize the RFID technology of Walker Digital Table Systems while one is looking to use that of Angel. According to a recent report by investment bank Morgan Stanley, “MGM’s competitors will take some time to fully optimize their systems after installation, suggesting that MGM’s advantage will be maintained until at least the end of 2024.” |
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Post by Blitz on Apr 1, 2024 6:38:18 GMT -5
RFID tables benefits could be offset by privacy concerns: gaming expert By Viviana Chan - March 31, 2024 agbrief.com/news/macau/31/03/2024/rfid-tables-benefits-could-be-offset-by-privacy-concerns-gaming-expert/After Macau authorities announced their intention for all gaming concessionaires to adopt radio frequency identification (RFID) tables, commonly known as smart gaming tables, a gaming insider believes that the measure will have a “net neutral” impact on Macau’s gaming revenue. Ben Lee, IGamiX Speaking with AGB, IGamiX Managing Partner Ben Lee thinks that the benefits of smart gaming tables regarding the improvement in marketing efficiency “could be offset by potential players’ reticence on being tracked,” indicating that “most mass players would not care” about the implementation of RFID tables; however, “the ones who downgraded themselves from the VIP room to the premium mass might, as they did that to escape scrutiny.” Generally speaking, Ben Lee considers it difficult to predict the impact of the proliferation of RFID gaming tables on gaming revenue. Another gaming insider, who prefers not to be identified, told AGB that the implementation of RFID tables in Macau will have “few impacts” on the gaming industry, particularly concerning data collecting concerns. With RFID tables, every bet can be tracked back to the player, but he points out that “Macau probably has the most dense surveillance camera coverage than anywhere in Mainland China.” Under these circumstances, Macau players will not care about being tracked on their bets. Currently, all six gaming operators in Macau plan to install RFID tables in the coming months to improve marketing efficiency and productivity. As reported by AGB, Melco will have its first batch of tables installed in the premium mass gaming area by the end of this month, followed by Galaxy in 2Q24E and SJM starting off at Grand Lisboa in 4Q24E. Investment bank Goldman Sachs said that the pace of adoption will also depend on the availability of smart chips and tables. MGM China adopted RFID tables in 2016. The Macau gaming operator has been using the technology for analytics to better understand their players and to improve marketing efficiency. RFID tables have been around since 2014 but more for security reasons. For example, they have been used to identify fraud or scams on table games. Macau, Mass Table Gaming, Venetian Casino Floor, Macau GGR Not necessarily positive Lei Wai Nong, Macau’s Secretary for Economy and Finance, affirmed the government’s encouragement for Macau’s concessionaires to adopt RFID technology for calculating the betting turnover of foreign gaming customers. In late 2022, the Macau government declared that concessionaires in Macau could qualify for a tax deduction of up to 5 percent on gross gaming revenues upon successful recruitment of foreign gamblers. Legislation has also been implemented to oversee this initiative. Initially, concessionaires had set up exclusive gaming zones for foreigners to streamline the process of calculating betting turnover from international clientele. However, Bill Hornbuckle, CEO and President of MGM Resorts, disclosed that these zones had not resonated with the foreign customer base. The Secretary confirmed the government’s encouragement for concessionaires to implement RFID gaming on their casino floors. He mentioned the installation of relevant equipment to facilitate the calculation of bets placed by foreign bettors and emphasized the government’s role in monitoring and approving the system. Morningstar Senior Equity Analyst Jennifer Song Jennifer Song, an equity analyst with Morningstar, told AGB that MGM is the only one with fully optimized smart tables for now, which the company can track their potential premium clients; however, she notes that if the RFID tables are implemented in larger-sized casinos, the results may not be as positive as expected. She stated, “With larger data collected, more clients need to be tracked,” emphasizing the potential challenges. The RFID tables are designed for analytics to better understand the players and to improve marketing efficiency. Morgan Stanley, in a previous investment memo, found that RFID tables could improve the speed of the game and thus the win rate. ‘The mass table win rate of MGM China improved by 500 basis points compared to 4Q23 and 2018. There are many reasons for that, but smart tables may have helped too, on top of the natural ramp of its Cotai property,’ noted the report. The benefits of smart tables also include lower staff costs, with fewer pit managers and supervisors needed, as well as the availability of data on unrated gamblers. |
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Post by Blitz on Apr 8, 2024 7:34:10 GMT -5
‘Smart’ tables could up Macau GGR by 6pct: Citigroup Apr 08, 2024 Newsdesk www.ggrasia.com/smart-tables-could-up-macau-ggr-by-6pct-citigroup/‘Smart’ tables could up Macau GGR by 6pct: Citigroup So-called ‘smart’ gaming tables, that may involve the use of technology to monitor casino chips fitted with radio frequency identification (RFID) tags, could speed Macau baccarat play sufficiently to save five seconds per game and boost the economics of operations, irrespective of whether more customers come through the door of city’s casinos, says a Friday note from Citigroup. “Every five seconds saved per game of baccarat could translate into a 5.9 percent organic growth in GGR [gross gaming revenue],” suggested analysts George Choi and Ryan Cheung. This was despite the fact that smart tables alone “cannot drive more foot traffic into casinos”. Circa “10 percent of tables in Macau are now smart,” estimated Citgroup. If their use “becomes more widespread,” the institution would be even “more confident in the long-term growth prospects of the Macau gaming industry”. The institution mentioned that such technology should also make it easier for casinos to rate the value of individual players to the house, and reward them accordingly, via so-called ‘comps’ – complimentary goods or services. Citigroup said an example was being able to recognise players willing to make certain types of bet that – while offering higher odds to the customer – were generally more advantageous to the house. “For example it makes sense for casinos to increase their comps on players who consistently spend 10 percent of their baccarat wagers on the Lucky 6 exotic bet, as these players are, on our estimates, worth 125.5 percent more than players who strictly do main bets,” wrote Mr Choi and Mr Cheung. Other benefits of smart tables included being able “accurately” to capture “foreign player volumes, which could potentially reduce [for Macau casinos] the gaming tax rate by up to 5 percentage points”; and “improvements in AML [anti-money laundering] and responsible gaming measures, which the Macau government is likely to welcome.” Last month Macau’s casino regulator, the Gaming Inspection and Coordination Bureau, said some of its senior officials had a meeting with the city’s Judiciary Police and the security teams of Macau’s six casino operators, to discuss issues including surveillance systems and “smart” gaming tables. Several Macau operators have recently flagged plans to use RFID gaming tables. On March 14, Bill Hornbuckle, chief executive and president of MGM Resorts International, majority owner of Macau casino concessionaire MGM China Holdings Ltd, had told an investment forum that RFID chips – used by the group’s Macau business for some years – were a good way of tracking play by foreign customers, as well as in general for monitoring the monetary integrity of games. |
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