Citi forecasts organic growth in Macau GGR through smart gaming tables

Citi, in its latest comprehensive analysis of the Macau gaming industry, underscores the transformative potential of smart gaming tables and radio frequency identification (RFID) technology in driving increased gross gaming revenue (GGR) in the long term.   

Analysts George Choi and Ryan Cheung delved into the implications of the widespread adoption of smart gaming tables, emphasizing their observations and estimates regarding the technology’s prevalence and impact.  

Game acceleration and revenue growth  

Citi underscored the significance of smart gaming tables in expediting gameplay, citing the potential for a 5.9% increase in gross gaming revenue (GGR) for every five seconds saved per game of baccarat. This acceleration is expected to contribute significantly to revenue growth without relying on higher footfall.  

Current adoption rates and prospects  

The brokerage firm’s research revealed that RFID tables, also known as smart gaming tables, now represent approximately 10 percent of all tables in Macau. The report highlights specific instances of smart gaming table implementation across various casinos, including observations at MGM China, Londoner Casino, and Wynn Macau, and plans for further rollout by Galaxy, Melco, and SJM throughout 2024.  

Planned technology rollout by operators  

The research also revealed insights into operators’ strategies, indicating a widespread plan to implement smart gaming tables across all baccarat tables, with some aiming to complete the rollout by the end of the year. This proactive approach underscores the industry’s commitment to embracing technological advancements for enhanced operational efficiency and revenue generation.  

Benefits beyond game acceleration  

In addition to speeding up gameplay, smart gaming tables and RFID chips offer a range of benefits, including data capture on player betting patterns. This data enables more accurate player valuation and facilitates cost-effective player-comping strategies, enhancing overall operational efficiency and customer satisfaction.  

Combatting counterfeit chip use  

Citi’s research also found that integration of RFID technology aids in combating counterfeit chip use, a longstanding issue within Macau’s casinos. By enhancing security measures, operators can mitigate risks associated with fraudulent activities, further safeguarding the integrity of the gaming environment.