Macau casinos will not be changing the number of table games allowed at each venue since the Macau Secretary for Economy and Finance stated the cap will not be amended until 2022 ends. Lionel Leong Vai Tac, the Secretary, stated that the allocation of gaming tables for casino operators will be dependent on if the proposals meet the guidelines.

Mr. Leong made his statement during the Macau Legislative Assembly question and answer session. The table cap stands currently and the policy aims to limit an increase in live dealer table numbers to 3% compound annual expansion until 2022 comes to an end. This comes from a base of 5,485 tables counted at the end of the 2012 fourth quarter.

Investment analysts who cover the gaming industry have brought up the possibility of the Macau government to allow a ‘slight relaxation’ of the cap on tables for the new casinos that offer resort facilities that have non-gaming elements. Analysts believe that this move would be seen by investors as a sign that the public policy is in support of the gaming industry.

Based on the cap on gaming tables arithmetic completed by the government, there are 1,097 tables that are left to be shared among the projects in Cotai that are left to be opened. Nomura is a brokerage company that stated they do not anticipate that the six operators in Macau will create a price war as they begin to compete for the gambling segment of mass-market. The team of Nomura stated that they do not assign a high probability that a full-on price war will take place as casino operators have been scaling back their table supply as there is weak demand for the games.

To decide on the table allocation between the new properties, Mr. Leong stated that the government will be looking at each property in regards to the non-gaming components. The concessionaries, how the company creates partnerships with small and medium local enterprises as well as other factors will be considered.

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