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Galaxy Entertainment revenue up 11% YoY to $1.38B in 3Q24

Viviana Chan
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Galaxy Entertainment revenue up 11% YoY to $1.38B in 3Q24

Galaxy Entertainment Group (GEG) reported strong financial performance for the third quarter of 2024, with an 11 percent year-on-year increase in group revenue to HK$10.7 billion ($1.38 billion).

This growth reflects the company’s solid position as a key player in the region’s gaming and hospitality sectors, despite a 2 percent decline in revenue compared to the previous quarter.

According to the financial results released on Thursday morning, GEG’s group adjusted EBITDA for 3Q24 was HK$2.9 billion ($373 million), representing a 6 percent increase year-on-year, but a 7 percent decrease compared to the previous quarter.

The company’s gaming operations experienced an unlucky quarter in 3Q24, leading to an approximate HK$165 million reduction in adjusted EBITDA. However, when normalized, 3Q24 adjusted EBITDA stood at HK$3.1 billion ($399 million), up 7 percent year-on-year, though slightly down by 3 percent compared to the previous quarter.

As of September 30th, 2024, GEG’s balance sheet remained healthy, with cash and liquid investments totaling HK$28.6 billion ($3.68 billion). The company reported a net position of HK$27.4 billion ($3.53 billion), after accounting for HK$1.2 billion ($154 million) in debt.

GEG also paid an interim dividend of HK$0.50 ($0.064) per share on October 25th, 2024, demonstrating its commitment to rewarding shareholders.

Despite the challenges faced in 3Q24, GEG remains well-positioned for future growth. With a strong financial foundation and strategic focus, the company is poised to navigate future opportunities and challenges in the dynamic gaming and hospitality markets.

Galaxy Entertainment, Raffles Hotel, Macau
Galaxy Macau

Galaxy Macau hotel occupancy rate reaches 98 percent 

Galaxy Macau, GEG’s integrated resort located in the Cotai area, continues to be a major revenue generator for GEG. In 3Q24, Galaxy Macau’s net revenue totaled HK$8.4 billion ($1.08 billion), up 10 percent year-on-year but down 3 percent compared to the previous quarter.

This two-digit revenue growth underscores the property’s resilience, even though its adjusted EBITDA remained flat year-on-year at HK$2.6 billion ($335 million), representing an 8 percent decline from the previous quarter.

Unfavorable gaming results in 3Q24 led to a decrease in adjusted EBITDA by approximately HK$180 million ($23.2 million). However, normalized adjusted EBITDA for the quarter stood at HK$2.7 billion ($347 million), up 2 percent year-on-year, though slightly down by 3 percent compared to the previous quarter.

Hotel occupancy across Galaxy Macau’s seven hotels reached an impressive 98 percent in 3Q24, reflecting strong demand for the resort’s accommodations. This solid performance in the hospitality sector aligns with the company’s strategic position for future growth, reinforcing Galaxy Macau’s key role in GEG’s portfolio.

In addition to Galaxy Macau, StarWorld Macau also contributed positively, with 3Q24 net revenue of HK$1.3 billion ($167 million), up 9 percent year-on-year and 1 percent quarter-on-quarter.

Adjusted EBITDA for StarWorld Macau reached HK$396 million, up 14 percent year-on-year and 2 percent quarter-on-quarter. The property experienced favorable gaming results in 3Q24, which contributed an additional HK$15 million ($1.9 million) to adjusted EBITDA, bringing the normalized figure to HK$381 million ($49 million)—up 9 percent year-on-year and 7 percent quarter-on-quarter. StarWorld achieved full hotel occupancy in 3Q24, with a 100 percent rate.

Starworld Macau
StarWorld Macau
Broadway Macau, Galaxy Entertainment Group
Broadway Macau

Additionally, Broadway Macau and the City Clubs also made positive contributions. Broadway Macau’s 3Q24 adjusted EBITDA improved to HK$11 million ($1.4 million), compared to a loss of HK$14 million ($1.8 million) in 3Q23, while the City Clubs reported a 20 percent increase in adjusted EBITDA both year-on-year and quarter-on-quarter. The City Clubs division operates GEG’s satellite casinos and hotels.

Macau operators and authorities strategize on new Law on Illegal Gambling

Viviana Chan
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Macau operators and authorities strategize on new Law on Illegal Gambling

Law No. 20/2024, effective from October 29th, 2024, seeks to enhance measures against gambling-related crimes by imposing harsher penalties for “illegal lending for gambling” and introducing new offenses such as “operating illegal currency exchange for gambling.” These measures are designed to intensify efforts against illegal gambling activities.

According to a press release from the Judiciary Police published on WeChat Wednesday evening, a meeting was held on October 18th to discuss enforcement priorities following the law’s enactment. Key officials present included the head of the Judiciary Police’s Gambling and Economic Crime Investigation Department and the head of the Gambling Crime Investigation Division, along with relevant leaders from the Gaming Inspection Bureau.

Macau

On November 1st, a specialized meeting was held between the Judiciary Police and six gaming operators—MGM, Galaxy, Sands China, Melco Resorts, Wynn Macau, and SJM Holdings—to discuss prevention and combat strategies against illegal currency exchange crimes. This meeting involved several Judiciary Police officials and 17 representatives from the security and surveillance departments of these companies. 

The discussions focused on optimizing intelligence sharing regarding illegal currency exchange and enhancing tripartite reporting mechanisms to proactively detect and address currency exchange crime risks both within and outside casinos.

Macau

Joint patrols enhance security in casinos

On the same evening, a joint operation involving 17 personnel from both the Judiciary Police and the Gaming Inspection Bureau was conducted across multiple casinos in Cotai. The operation involved security checks within these establishments. A total of 146 individuals were intercepted, with no illegal currency exchange or other crimes detected. However, three mainland residents overstaying their visas were handed over to public security authorities after an investigation.

The Judiciary Police emphasized that under the new law, conducting money exchange activities within or near casinos is presumed to be for gambling purposes. Violators may face up to five years in prison, with all funds or items related to such crimes confiscated for the benefit of the Macao Special Administrative Region.

Macau, Judiciary Police

The Judiciary Police reiterated their commitment to combating “money changers” and urged the public and tourists to use legal channels for currency exchange to avoid involvement in criminal activities.

The Judiciary Police emphasized that they will continue collaborating with the Gaming Inspection Bureau and gaming companies to proactively prevent gambling-related crimes and illegal activities. They will also regularly review and improve cooperation mechanisms, reporting procedures, and emergency plans to maintain order and security in casinos and surrounding areas.

Daily Asia Gaming eBrief: Bookies/punters better judge of US election outcome

AGBrief Editorial
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Daily Asia Gaming eBrief: Bookies/punters better judge of US election outcome
Good morning. Bookies and punters played their Trump card in the US elections, favoring the former president over VP Kamala Harris. Those following betting sites were more likely to predict the outcome than the polls, which had favored a new twist for the top seat. Meanwhile, in Macau, Melco’s management is confident about its strategies going forward, amongst a new marketing push, despite not gaining ground in regards to market share.

What you need to know

On the radar

AGB Intelligence

US ELECTIONS

Bookies and punters had a better view of the outcome of the US election than polls

Bookies better at predicting outcome than polls

A Donald Trump victory in the US elections is now all but guaranteed. And it appears that bookies and punters had a better idea of the outcome than polls, which were favoring Kamala Harris. The elections brought a heavy amount of attention worldwide, encouraging a strong rise in political betting amounts, as punters put their money on the line.

Corporate Spotlight

1xBet: Capitalize on Asian teams’ World Cup qualifier struggles

Profit from the challenges faced by top Asian teams in World Cup qualifiers

Asia is the most populated continent on the planet and Football is the No. 1 sport in most countries. The World Cup qualifying matches are traditionally watched by billions of fans in the region, but FIFA has decided to reward Asia with a significant representation at the tournament only now.

Altenar brings premium sportsbook solution to Asia

Altenar brings premium sportsbook solution to Asia

Altenar, a leading sportsbook provider is bringing its global expertise to Asia, looking to expand its operations. Since 2011, Altenar has powered hundreds of online sports betting sites worldwide and is a major B2B provider in Europe and Latin America licensed markets.

Industry Updates

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Bookies again win prediction race of US election over pollsters

Nelson Moura
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Bookies again win prediction race of US election over pollsters

With a Trump victory in the US presidential elections pretty much assured, bookies again were a better gauge of the result than most conventional polls issued before the election.

A total of $1.8 billion has been bet worldwide on the US election, Polymarket reported, with most bookies having favored Donald Trump’s odds to regain his seat at the White House.

Unlike polls, which survey voters directly, betting markets reflect the sentiments and behaviors of those willing to put money into an outcome.

According to the Conversation, a nonprofit news organization, the betting favorite has only lost twice since 1866: in 2016, when then-Secretary of State Hillary Clinton was favored over Trump throughout the campaign, only to lose, and in 1948, when Democrat Harry Truman beat 8-to-1 odds to defeat Republican Thomas Dewey.

As recently as midweek, the betting at Polymarket gave Trump a 67 percent chance of winning, odds that still went down to 58 percent shortly before the election, with Harris’ chances having risen from 33 to 42.

Presidential election betting can’t be done legally in the US, and much of the information came from UK bookmakers, which mostly gave Trump a clear edge.

Betfair Exchange, for example, the biggest UK peer-to-peer betting platform, predicted last week that Trump would likely win, giving him 1.63 odds to win the election, over Harris with 2.56

Ladbrokes offered bets on Trump winning at 8/13, equivalent to a 62 percent chance, and Harris 11/8, equivalent to 42 percent. Gamblers at PredictIt seemed to have been the only cautious ones, with odds exactly level at 52 percent shortly before the election.

Meanwhile, the final six public polls right before the election basically told the same story as each other and the previous polls in October, a razor-thin margin. Three of those last six polls were actual ties; one has Kamala Harris ahead by three points; the others have Donald Trump up by one point and two points.

For example, a national poll of likely voters from Emerson College found that Trump and Harris had 49 percent support each among US voters. At the same time, a poll released Sunday by ABC News/Ipsos found that Harris had 49 percent support among likely voters, and Trump trailed behind at 46 percent.

In the FiveThirtyEight’s National Polls tracker, Harris held a narrow lead of 1 percentage point over Trump, while a poll released Sunday by The New York Times and Siena College claimed that Harris has pulled ahead of Trump in North Carolina and Wisconsin, crucial swing states that ended up leaning towards the Republican candidate.

All this, despite a majority of pollsters having changed their methods since the 2016 and 2020 presidential elections, where Trump’s performance was significantly underestimated.

“We don’t always see the misses in the same direction,” Chris Jackson, the senior vice president of public affairs for Ipsos stated recently. “I can tell you that the polling industry has made substantial changes to how we do our surveys to try to account for what we think was driving those errors in 2020″. 

Zillion Games unveils Egypt’s Moon, a slot adventure through Ancient Egypt

AGBrief Editorial
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Zillion Games unveils Egypt’s Moon, a slot adventure through Ancient Egypt

Zillion Games, a top B2B online slots provider with an engaging casino games portfolio, has announced the release of Egypt’s Moon, a high-volatility slot that invites players to journey through the mysteries of ancient Egypt under a mesmerizing nighttime sky.

Featuring Cleopatra, hidden treasures, and the essence of Egypt’s rich mythology, Egypt’s Moon promises an enthralling experience set against a captivating backdrop.

This slot game offers players 25 paylines and an RTP of 96.75%, delivering both excitement and reward. The Random Wild feature activates unpredictably, adding wilds to the reels for increased win potential, while Stacked Wilds appear in stacks of 2-4 symbols, enhancing chances of landing winning paylines.

With the innovative Boost Symbol, landing alongside a bonus symbol adds extra value to the win. Players also benefit from special features like the 5 Symbols Line Pop-Up for additional rewards and an Accumulated Bonus Symbol system that unlocks unique game modes.

The Hold and Ring bonus mode and Mystery Symbols present opportunities to win jackpots, including the coveted Grand Jackpot. The Free Spins mode, complete with walking wilds and Boost symbols, maximizes excitingly winning potential.

Egypt’s Moon combines stunning visuals with dynamic gameplay, offering players an immersive adventure in ancient Egypt that promises thrilling wins.

Smartico.ai and BetStarters team up to enhance iGaming engagement

AGBrief Editorial
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Smartico.ai and BetStarters team up to enhance iGaming engagement

Smartico.ai, a leader in CRM automation and gamification solutions, has partnered with BetStarters, a rapidly growing innovator in iGaming technology, to introduce cutting-edge engagement solutions across BetStarters’ client platforms.

The partnership will grant BetStarters’ customers access to Smartico’s real-time data-driven CRM and personalized gamification tools. These tools are designed to enhance user engagement, retention, and overall player satisfaction. By integrating Smartico’s sophisticated CRM automation, BetStarters’ clients can now create more immersive and highly tailored player journeys.

Operators will have the ability to roll out custom gamification features, such as leaderboards, loyalty programs, and interactive missions, all geared toward keeping players engaged and reducing player churn. These enhancements are set to streamline operations for BetStarters’ operators while driving an increase in lifetime player value.

Yuval Mechoullam, CBDO and Co-Founder of Smartico.ai
Yuval Mechoullam, CBDO and Co-Founder at Smartico.ai

Yuval Mechoullam, CBDO and Co-Founder of Smartico.ai said: “Joining forces with BetStarters aligns perfectly with our mission to deliver advanced gamification and CRM solutions to operators looking to optimize player interaction. BetStarters’ platform is a powerful engine for growth, and we’re excited to integrate our technologies to offer more dynamic, personalized, and rewarding player experiences.”

Glenn Debattista, COO, BetStarters
Glenn Debattista, COO at BetStarters

Glenn Debattista, COO of BetStarters, said: “Our collaboration with Smartico.ai marks an exciting step forward for BetStarters. As we continue to push boundaries in the iGaming space, this partnership allows us to bring the best real-time engagement tools to our clients, helping them deliver unparalleled player experiences. Together, we can help our partners not only meet but exceed their retention and engagement goals.”

ZITRO Digital joins SiGMA Europe 2024 in Malta

AGBrief Editorial
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ZITRO Digital joins SiGMA Europe 2024 in Malta

Zitro Digital has announced its attendance at SiGMA Europe 2024, one of the largest iGaming exhibitions in the industry. The event will take place from November 11th to 16th 2024 at the Mediterranean Maritime Hub (MMH) in Malta.

Chief Operating Officer José Javier Martí will be on-site to meet with clients and discuss the company’s latest digital offerings.

Attendees are encouraged to connect with José Javier Martí to learn more about the latest game launches, including Fu Pots Summer and Striker’s Fortune, as well as Zitro Digital’s popular frog-themed games from the Fu Frog series.

In addition, Zitro Digital will have its seasonal-themed game, Calaca Cash, available, along with the entire collection of slot and video bingo games. The company will also present various promotional tools designed to support operators in the commercial management of its games.

Visitors to SiGMA Europe 2024 will have the opportunity to discover how Zitro Digital’s offerings can elevate gaming experiences and drive business success!

Senator calls for unified action against POGO-linked crimes

Nelson Moura
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Senator calls for unified action against POGO-linked crimes

Philippines’ Senator Sherwin Gatchalian urged various government agencies involved in combating Philippine Offshore Gaming Operators (POGOs) and associated criminal activities to enhance their coordination.

According to the Philippine News Agency, on Wednesday he called on the Philippine National Police, the Presidential Anti-Organized Crime Commission (PAOCC), the National Bureau of Investigation (NBI), and the Bureau of Immigration (BI), among others, to collaborate closely with the Philippine Amusement and Gaming Corporation (PAGCOR) to develop a cohesive strategy to eliminate POGO-related crimes.

Gatchalian stressed that a lack of unity among these agencies could undermine efforts to tackle POGO operations, allowing them to exploit vulnerabilities. His remarks followed a controversial anti-POGO operation at the Century Peak Tower in Ermita, Manila, on October 29th, which the PAOCC criticized as “flawed,” noting that foreign suspects were released without consultation with the PAOCC.

“We must not allow the illegal activities of POGOs to persist in our communities due to a lack of coordination”, he stated.

In his recent State of the Nation Address, President Ferdinand R. Marcos Jr. announced a ban on all POGOs, directing PAGCOR to shut down their operations by the year’s end.

PAOCC also revealed that 111 illegal POGO hubs across the country are still active, highlighting the urgent need for a unified response.

Wazdan launches player-favourite sequel with the release of 12 Bells

AGBrief Editorial
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Wazdan launches player-favourite sequel with the release of 12 Bells

Wazdan, a leading gain-focused developer, has expanded its fan-favorite Bells™ collection with the latest release, 12 Bells™.

Building on the success of the popular series, the 12 Bells™ introduces players to a revamped gameboard across 12 reels with a thrilling twist on familiar features, such as the signature Hold the Jackpot™ and Cash Infinity™ combination, which fans will recognize from the popular Coins™ series.

Exclusive rewards are available during the Hold the Jackpot™ and the innovative 12 Bells Bonus Game. In the 12 Bells Bonus Game, players can select three out of 12 gates, each hiding a secret reward. This exciting feature is enhanced by the new One Click 2 Grand™ option, allowing players to claim the Grand Jackpot with just a single click.

Both bonus rounds unlock the potential to win the Grand Jackpot prize, worth up to 750x their bet, providing significant win potential. Additionally, the Chance Level™ mechanic has been integrated to enhance gameplay engagement, making it more exciting to access the bonus rounds.

Wazdan’s newest release showcases its customizable gaming approach and successful application of its Online gaining™ philosophy. This strategy has been crucial in achieving real results, allowing players to adjust gameplay to match their individual preferences.

Andrzej Hyla, Chief Commercial Officer at Wazdan, said: “Our newest release, 12 Bells™, not only builds on the beloved Bells series but also elevates the experience with fresh mechanics like the 12 Bells bonus game and One Click 2 Grand™ feature. We are dedicated to delivering games that resonate with our audience, and 12 Bells™ is a prime example of our commitment to blending proven features with new, exhilarating elements.”

Melco confident in revamped marketing strategy despite no share gains

Viviana Chan
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Melco confident in revamped marketing strategy despite no share gains

Macau gaming operator Melco Resorts & Entertainment’s management has expressed confidence in its current marketing strategy, despite it not yet resulting in a market share gain.

According to an investment memo from UBS, released after the company’s third-quarter 2024 results, analysts noted that Melco has implemented a series of initiatives since mid-September aimed at capturing market share. These efforts include improving accessibility at its flagship City of Dreams resort, revamping casino floors, and relaunching its loyalty program.

While these initiatives have not yet translated into a market share gain in 3Q24—during which mass gaming gross gaming revenue (GGR) was down approximately 3 percent quarter-on-quarter—management remains optimistic about their effectiveness. The GGR decline was slightly worse than the industry-wide trend, which saw a smaller drop of about 1 percent QoQ.

As reported previously, Melco’s marketing strategy was restructured with the goal of improving performance. The employee incentive scheme was reorganized and simplified, while the Melco loyalty program was revamped, with the return of the Signature Club, Melco’s highest tier for premium mass players. The objective is to return to 2019 EBITDA levels by the end of 2025.

For 3Q24, Melco Resorts reported group-wide EBITDA of $303 million, reflecting a year-on-year increase of about 15 percent and a quarter-on-quarter rise of approximately 7 percent. Adjusted for a positive VIP hold, EBITDA would stand at $276 million, broadly in line with consensus estimates and UBS’s projections of $272-274 million.

On the cost side, Melco’s daily operating expenses remained stable at $2.9 million per day (excluding residency concerts), consistent with the previous quarter. The company continues to guide its daily operating expenses to trend toward $3 million per day in 4Q24, as it focuses on controlling costs while seeking growth through its revamped marketing initiatives.

The return of its renewed residency show, The House of Dancing Water, is expected to take place in 2Q25, which will add operating expenses of about $100k per day. However, this is expected to be EBITDA positive.

The House of Dancing Water, City of Dreams, Macau
House of Dancing Water, City of Dreams, Macau
The-House-of-Dancing-Water-Franco-Dragone
The House of Dancing Water

Dividend resumption in 2H25

Melco Resorts’s management has indicated that it will consider resuming dividends in the second half of 2025 (2H25). The company’s outlook has been bolstered by strong performance during October’s Golden Week, with mass table drop rising more than 20 percent year-on-year, in line with broader market trends.

In terms of shareholder returns, Melco implemented a share buyback program in 3Q24, repurchasing 20.7 million American Depositary Shares (ADS), representing approximately 5 percent of its shares outstanding, for a total of $112 million. Of these repurchased shares, 17.7 million ADS have been canceled, and the company remains open to further buybacks in the future.

While the potential for dividend resumption is on the table, management has reiterated its focus on deleveraging, ensuring that the company maintains a strong financial position before returning capital to shareholders.

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