CASINO

SJM Holdings’ Casino Taipa reopens in Macau after 8 years

TAGs: casino taipa, Grant Govertsen, Macau, SJM Holdings, Union Gaming

Casino Taipa has restarted its Macau operations after being dark for eight years.

SJM Holdings’ Casino Taipa reopens in Macau after 8 yearsThe casino, located in the Regency Art Hotel, is under the gaming license of gaming operator SJM Holdings Ltd., according to Union Gaming Securities Asia Ltd. However, there is a small chance that the gaming venue will contribute “substantial extra revenue” for the operator.

“It is small, with just five tables and 112 electronic gaming seats (a mixture of slot machines and ETGs) spread across 795 square meters,” Union Gaming analyst Grant Govertsen said in a note.

The analyst said it appears that SJM reactivated the dormant casino license for Casino Taipa, which has been closed since 2008, rather than apply for a new license.

“Casino Taipa historically was a so-called ‘self-promoted’ SJM casino rather than a third party, or satellite, casino,” Govertsen said.

Aside from Casino Taipa, SJM has two other self-promoted casinos that appear to have dormant licenses: Casino Marina, located near Galaxy Entertainment’s Broadway in Cotai, and the old floating Casino Macao Palace. The gaming operator also has a third-party promoted casino, the Greek Mythology, which appears to be in a similar state as Casino Taipa, meaning it has the potential to reopen in the future.

Still, Union Gaming is not changing its estimates on SJM Holdings.

“We do not believe Casino Taipa will generate material revenues or profits. This is a function not only of its size, but also given its location in Taipa that is disadvantageous relative to both the Macau peninsula and Cotai. To put the scale of Casino Taipa in perspective, we note that its 5 tables represent just 0.3% of SJM’s total supply, while its 112 slots represent 4% of company-wide supply,” Govertsen said.

The Macau casino operator reported improved profits in the third quarter of the year, despite year-on-year declines in both VIP gaming turnover and win rate. SJM’s gaming revenue hit just under HKD10 billion (USD1.29 billion) in the three months ending September 30, while profit improved 80.2 percent to HKD513 million, thanks to the absence of some significant impairment charges in Q3 2015.

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