May 2, 2007
Macao: The Target For Server-Based Gaming
1.MGM, Virgin, Wynn, Sands, Boyd Games and Stanley Ho are investing more than $20 Billion in new gaming facilities in Macao
2.No incumbent gaming technology
3.Macao is the fastest growing gaming capital in the world
1.MGM, Virgin, Wynn, Sands, Boyd Games and Stanley Ho are investing more than $20 Billion in new gaming facilities in Macao
2.No incumbent gaming technology
3.Macao is the fastest growing gaming capital in the world
Analysis:
With over $20 Billion of incoming investment from the likes of MGM, Sands, Steve Wynn, Virgin, Boyd Games and Stanley Ho, Macao should be viewed as the frontier for server based gaming technology.
The average table in Macao earns three times more than a comparable table in Las Vegas.Macao posted $6.9 billion in revenue last year out pacing Las Vegas.Now with a complete overhaul of Macao’s infrastructure and with new entrants (MGM, Sand, Wynn, Branson and Boyd), Macao is ripe for a new gaming infrastructure.Unlike in Las Vegas, MGM will be much more bullish about adding the new infrastructure for server based gaming as there is no incumbent infrastructure to replace.The only player replacing infrastructure is Stanly Ho.Most of Stanley Ho’s infrastructure needs to be upgraded to compete with the new entrants.
As both Western and Eastern games are played in Macao, sever based gaming would be an efficient way to populate the new casino’s with games and slots.Server based games would also allow games to be played in multiple languages.The gaming equipment manufacture that can work through the regulatory issues in Macao and lands the majority of Macao’s server based games will be the player that will see the biggest sales worldwide in the near term.
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