Texas Hold’em is rarely offered by casino operators in Macau as it does not drive that much revenue compared to other segments, and that continues to be the case in 2023, with just one or two venues running poker tables, according to industry analysts. 

However, the popular poker variant is performing way better this year in terms of gross gaming revenue (GGR) compared to 2022, based on the latest figures from Macau’s gaming regulator, the Gaming Inspection and Coordination Bureau (DICJ).

Low Profitability

GGR linked to Texas Hold’em poker hit a record high of MOP446 million (US$55.4 million) in 2019, but that was it. The segment failed to sustain its momentum as figures dropped significantly to MOP35 million in 2020 and further fell to MOP10 million in 2022. 

Gaming industry consultant Alidad Tash of 2NT8 Ltd said Macau operators remain hesitant to offer poker games because of their low profitability, with casinos only making a fraction of the winnings, as opposed to other games where the house gets the entire winnings if the player loses.

In 2023 though, poker-related revenue is on an upward trend, with Q1 figures already sitting at MOP 90 million. Still, this represents modest growth for the segment.

Poker Has “Spillover” Effect

MGM China Holdings launched a poker room at its MGM Macau and MGM Cotai properties, according to Citigroup analysts George Choi and Ryan Cheung. 

While operators like MGM cannot rely on the revenue generated by their poker offerings, they can benefit from the “spillover” effect, said gaming lecturer Ryan Ho Hong Wai.

The head of NHS England has raised concerns over the impact of sponsorship deals between betting companies and football clubs on young fans. Amanda Pritchard said such agreements expose kids to gambling and make them believe that engaging in the activity is ok. 

New Addiction Clinics to Open this Summer

Pritchard made the comments as the NHS reported a massive rise in addiction referrals in 2022-23, with the numbers reaching a record 1,389, up from 1,013 in 2021-22 and 775 in 2020-2021. 

NHS England will open seven more clinics in multiple locations throughout the country, in addition to the existing eight, to deal with the increasing number of patients seeking help and support. The new clinics will begin operating this summer.

On June 29, a coroner’s inquest into a gambling-related suicide case found that the betting firm in question, Betfair, failed to intervene when the victim’s gambling activity soared resulting in massive debts in the weeks before ending his own life.  

Gambling operators and betting firms continue to target Brits through heavy gambling advertising and sponsorship deals with football firms. Pritchard wants these two areas to be address in a bid to curb the growing rate of problem gambling addiction in the UK.

Calls for a total ban on Philippine Offshore Gaming Operators (POGO) have received strong backing from the country’s Finance Secretary Benjamin Diokno. The Cabinet official said the government may look for other sources of revenue when the POGO industry is ultimately shut down.

POGO Risks Outweigh Benefits

POGOs generated nearly PHP4.44 billion (US$80.1 million) in tax revenue in the first eight months of 2022, up from PHP3.91 billion in the entire 2021. But Diokno believes the risks and social costs associated with the industry outweigh any benefit that the government gets from it. He told the “Kapihan sa Manila Bay” weekly news forum that the industry needs to be dismantled given the criminal activities linked to POGO firms which pose a threat to national security and taints the country’s reputation.

Diokno said there are other ways the government can collect significant revenue once POGOs cease their operations.

PAGCOR Keen on Punishing POGO Offenders 

The POGO industry has come under increased scrutiny in the Philippines after some operators were found to have been involved in organized crime, including human trafficking. Several government officials want POGOs banned from the country, with Senator Sherwin Gatchalian among the most vocal critics. 

Amid the numerous controversies hounding the sector, the country’s gaming regulator, the Philippine Amusement and Gaming Corporation (PAGCOR), has vowed to punish violators, especially those engaging in criminal activities. Recent actions from the agency resulted in the cancellation of the license of a third-party firm over its involvement in human trafficking which was uncovered in May.

Larry Silverstein and his real estate company Silverstein Properties recently announced plans to develop a casino in Midtown Manhattan, joining several other major bidders for one of three gaming licenses up for grabs in downstate New York. 

Mr. Silverstein has high hopes for his proposal which he said will greatly benefit the Manhattan community and New York City in general.

“Avenir” Project Key Details

Mr. Silverstein has joined forces with London-based businessman Watche “Bob” Manoukian for the casino development named “Avenir”. This would mark Silverstein’s first foray into the casino world, but his partner is no stranger to running gaming operations being the owner of Parx Casino in Pennsylvania. 

The Avenir project would feature two 46-storey towers connected by a public sky bridge, a hotel, and a 100-unit affordable housing complex, among other amenities. The base would be an eight-storey complex that would house restaurants, an entertainment area, and a casino.

Ideal Location

The Avenir development will be built at a site at 11th Avenue and 41st Street which is owned by Silverstein. Proponents of the project say it’s the perfect location for a casino as it encompasses neighborhoods but is not really situated at the center of communities. 

This means the project would not provoke serious concerns from residents, unlike its rivals, including the Times Square casino proposal from SL Green, Caesars, and Jay-Z.

Macau casino operators had earlier cut ties with junkets due to the crackdown on VIP gamblers but it looks like Galaxy Macau has gone back to targeting VIP players.

Galaxy Macau’s VIP gaming zone is currently hosting a junket promoter. The third-party gaming promoter, named the “United Promotor de Jogo Sociedade Unipessoal Limitada” is controlled by Kwok Chi Chung, President of the Macau Association of Gaming and Entertainment Promoters.

Junket Operating at Galaxy Macau’s VIP Zone

Mr. Kwok revealed that his company entered into a junket partnership with Galaxy Macau before the start of the new gaming concessions on January 1, 2023. The junket has been operating “smoothly” so far at the Yinzuan Club VIP area of the Cotai resort, he said. The gaming promoter is bringing customers from Hong Kong and mainland China. 

Yinzuan Club is located in Galaxy Macau’s VIP east wing near the Diamond Lobby, the same area where the casino’s foreigner-only gaming zone, Noble International Club is situated. 

No Comment Yet From Galaxy Macau

Mr. Kwok’s firm is based and licensed in Macau and is currently the only junket promoter at Galaxy Macau. The operator has yet to confirm whether it would cater to more junkets in the future.

The confirmation from Mr. Kwok comes as Macau’s junket industry continues to shrink following the arrests and sentencing of two former junket moguls. 

The Macau government has introduced new rules regarding junket operations, with promoters only allowed to partner with just one casino operator.