Morgan Stanley Asia Ltd has a first mover competitive advantage because it has fully optimized its "smart" gaming table over the other five Macau concession companies in an update to its Macau gaming division, suggesting that this advantage will last "at least until the end of 2024.
Citing radio frequency identification (RFID) technology, analysts Pravin Chowdhary and Gareth Leung said, citing industry sources: "After installing the RFID/Smart Table, it takes approximately six months for the underlying features to be fully utilized/optimized. However, it may take longer depending on how the operator uses the technology."
But they added: "Casino has found that they get their money back in less than 12 months with their hardware investments."
Morgan Stanley said the reason is that "RFID/smart tables can improve game speed and thus increase winning percentage."
The agency said in the fourth quarter of 2023 that "MGM China's mass table win rate improved by 500 basis points" compared to 2018. That was the same year MGM Kotai opened, complementing the casino company's market position through MGM Macau.
"Smart tables may also have helped in addition to the natural ramp of Kotai Real Estate," Morgan Stanley says.
Recently, several Macau operators announced their plans to use RFID gaming tables. A Macau government official also recently held a meeting with the operators to discuss smart gaming table technology and other security-related topics.
On March 14, Bill Hornbuckle, the chief executive and president of MGM Resorts International, a majority shareholder of the Macau casino concession company MGM China Holdings, told an investment forum that RFID, which the group's Macau division has used for years, is a good way to track foreign customers' play and monitor the financial integrity of games in general. 홀짝게임
MGM China is currently promoting the accuracy of game point calculations for players through advertising slogans on its high-capacity RFID table, and confirmed GGRAsia through on-site verification.
Morgan Stanley analysts acknowledged that RFID tables could be used to "accurately identify" potentially foreign gamblers who could attract them to casino venues, who could receive a 5% rebate on GGR taxes.
The agency said MGM China and market rival Wynn Macau gained popular market share in the first quarter of 2024, and both companies expected earnings estimates for the current fiscal year to be revised positively.