The Macau gambling behemoth Galaxy Entertainment has declared its determination to get a casino licence in Japan, entering in what has already turned into a fierce battle between leading gambling operators.
A number of gaming moguls, including MGM Resorts, Wynn Resorts, Melco Resorts & Entertainment and Las Vegas Sands have all previously shared their intentions to unveil casino resorts in Japan, with them all fighting to get as much as they can of the industry which legalised casino gambling only a few months ago, at the end of 2016.
The Vice Chairman of Galaxy Entertainment, Francis Lui, explained that the management team of the company saw the great potential of the Japanese market and were focused on being granted with a casino licence in the country, in cooperation with Societe des Bains de Mer.
The intentions of the gambling giant are very likely to make the rivalry between the foreign gambling operators that are expected to soon present plans for their first casino resorts on the territory of the country. As previously said, the gambling market in Japan has been regulated by a Parliament’s bill only recently, so it has become a desired destination for a number of leading operators on a global scale.
In addition, Japan is a common destination for Chinese tourists, with thousands of them coming to the country on a monthly basis. Leading casino operators have reasonably suggested that the newly-regulated market of the country would be attractive to even more foreign players to the region. Now, a number of gambling giants are facing each other in what seems to be one of the greatest competitions for bigger market share.
Galaxy Entertainment Strong Q1 EBITDA Increase
The desired expansion in Japan for Galaxy Entertainment comes at a time when the gambling behemoth has reported that its earnings over the first fiscal quarter have exceeded the analysts’ projections.
As revealed by the company, its EBITDA (earnings before interest, taxes, depreciation and amortisation) for the three months ended on March 31st 2017 marked a strong 31% growth and reached HK$3.2 billion in comparison to the analysts’ estimates for EBITDA of HK$2.99 billion. The operator’s revenue also increased by 5% year-on-year and reached HK$14.1 billion.
The strong quarterly results were pushed up by the recent casino industry recovery in Macau. The local casino decline has been associated with an anti-corruption campaign on the territory of China. Back in 2014, the Chinese President Xi Jinping started a campaign against public officials and more specifically against the increasing high-level corruption.
Currently, Macau, a former Portuguese colony which now has a special administrative region belonging to China, is the only place in the country which has legalised casino gambling. The gambling business has faced a lot of difficulties after the launch of the anti-corruption campaign, but the opening of a number of new resorts over the second half of 2016 has helped Macau regain both high rollers and casual gamblers’ demand.
- Author
Olivia Cole
