An analysis of the premium gaming areas of Macau’s integrated resorts by investment bank Citigroup has highlighted another round of innovation by operators when it comes to baccarat side bets – further highlighting the impact of smart table rollout across the city’s gaming floors.
A month after Citi’s regular table survey noted that Sands China had added a progressive jackpot to most of its baccarat operations, analysts George Choi and Timothy Chau observed that multiple operators have introduced the new Big/Small 7 side bet to their baccarat tables, albeit with differing strategies.
Melco, MGM and Wynn, Citi explained, have opted for a “less is more” strategy by removing both the conventional Lucky 6 and Lucky 7 side bets from their tables but adding the Big/Small 7 to the mix and keeping Big/Small 6 and Super Lucky 7.
Sands and Galaxy have instead opted to go “all-in” and retain all side bet options. According to Choi and Chau, both strategies should work well in the long run.
The new Big/Small 7 side bet is similar to the conventional Lucky 7 except players must make a call on whether the Lucky 7 winning hand is composed of two cards or three cards. It is one of a number of new side bet initiatives introduced by operators in recent months as they become more confident in their ability to offer and track these high-edge options given the data generated by smart tables.
In Monday’s note, Citi said, “While player count, wager size and time spent at casinos are key drivers for GGR growth, they are not the only drivers. Introduction of new side bets (and the popularity of them) can increase hold rates and provide an extra boost to GGR.”
The bank’s August table survey also found strong visitation and wager per player, with average wager up 10% year-on-year to HK$21,543. Total wager observed amounted to HK$13.4 million, up 5% year-on-year, despite the total number of players falling by 5% to 624.
“Encouragingly, wager/player has seen four consecutive months of double-digit growth, implying solid player quality improvement,” Citi explained.
