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.