All six gaming operators in Macau plan to install RFID (Radio Frequency Identification) tables in the coming months to improve marketing efficiency and productivity, according to Goldman Sachs.
According to the equity research released after hosting an investor tour in Macau, Melco will have its first batch of tables installed in the premium mass gaming area by the end of this month, followed by Galaxy in 2Q24E and SJM starting off at Grand Lisboa in 4Q24E.
‘The pace of adoption will also depend on the availability of smart chips and tables,’ it adds.
Macau gaming operator MGM China adopted RFID tables in 2016. The report mentions that ‘MGM has been using the technology for analytics to better understand their players and to improve marketing efficiency.’
‘The other five casino operators all mentioned that they are either reviewing or preparing to roll out RFID tables in the coming quarters.’
RFID tables have been around since 2014 but more for security reasons. For example, it has been used to identify fraud or scams on table games.
‘According to SJM, there are only three reliable developers at the moment. Besides marketing benefits, some operators believe the RFID tables could drive 5-8 percent table productivity improvement by speeding up the games as dealers would take less time to count and verify chips.’
On the flip side, it may raise concerns about personal data privacy since players get tracked closely in everything they do. In this context, the research team believes the deployment of RFID tables could ‘help operators on customer data analytics, but individual casinos’ performance should be more dependent on product and service offering.’
In another investment memo, Macquarie says that MGM China gained the most gross gaming revenue (GGR) market share in 4Q23. While MGM was first, wider adoption of RFID tables will help level the playing field.
‘The technology can help observe player behavior, making for more effective marketing, as well as improve both the efficiency and integrity of the gaming floor.’
Macquarie forecasts that its gradual adoption will level the playing field between the six operators and may reshuffle market-share standings in 2024.
