Macau’s Paradise Entertainment Ltd has described the demise of the VIP gaming segment as a positive for its future prospects, predicting increased demand for its live multi-game (LMG) product and other electronic gaming machines in the coming years.
That’s despite Casino Kam Pek Paradise – the peninsula satellite casino to which Paradise provides casino management services – seeing its gaming table allocation slashed from 49 tables at end-2022 to just 30 tables as per its new three-year agreement with Macau concessionaire SJM Resorts.
According to details contained within the group’s 2022 financial results, released overnight, Paradise inked a new three-year deal with SJM on 30 December 2022 for the ongoing management of Casino Kam Pek Paradise, within which it has been allocated 30 gaming tables and 100 slot machines. Paradise said it had 49 tables under management at end-2022 although only 33 were in operation – along with 98 slot machines, 8 LMG tables and 493 LMG terminals.
Nevertheless, Paradise said the recent easing of border restrictions and the implementation of Macau’s new gaming law provides an avenue for casinos who focus on mass market customers to flourish.
“The Group has a good reputation as a casino management services provider focusing on mass market patrons for satellite casinos in Macau and has a strong foothold in this aspect of the gaming industry, which has been demonstrated by the outperformance of Casino Kam Pek Paradise as compared with many other satellite casinos in Macau,” it said.
“Furthermore, Macau’s new gaming law has accelerated the demise of the VIP gaming segment, and we expect that the demand for electronic gaming machines should continue to grow. The Group remains confident that our LMG machines and other ETG machines will have ample room for development in the future, both in Macau and in overseas gaming markets.”
Paradise reported a loss of HK$166.3 million (US$21.2 million) in 2022, widened from a loss of HK$88.4 million (US$11.3 million) a year earlier due to the ongoing impact of COVID-19 restrictions throughout the year. Group-wide revenue for the year fell by 39.7% to HK$297.8 million (US$37.9 million), with an Adjusted EBITDA loss of HK$109 million (US$13.9 million).
