Galaxy Entertainment Group Seeks New Grounds for Business Outside Macau’s Reeling Gambling Industry

Macau continues to reel under negative sentiments, with several operators seeking newer and more profitable avenues for business.

The latest to explore options out of Macau is the Galaxy Entertainment Group, which has an ownership stake in several casinos, such as the StarWorld Macau, Galaxy Macau, and Broadway Macau. This Hong Kong listed company is now seeking to diversify its portfolio with an interest in the booming market of Europe.

The company is ready to buy a stake of 5% in the Societe des Bains de Mer et du Cercle des Etrangers a Monaco (SBM) from an independent third party, though they are yet to reveal the seller’s name or the purchase price.

Peter Caveny, Galaxy spokesperson spoke to swissinfo.ch and said that, “We see it as a potential to develop a strategic long-term partnership with them.”

Simultaneously, the world’s leading luxury-goods maker, LVMH Moet Hennessy Louis Vuitton SE announced that it would be taking up a 5% stake in SBM. With this, SBM will now have Monaco as its largest shareholder, with 42 out of its 58 properties located in the tiny Kingdom itself. These include luxury hotels, restaurants, bars, night-clubs, spas, beach and golf clubs

Macau has been reeling from losses, due to last year’s political crackdown on the gambling industry, along with the recent proposed smoking ban, which threatens to completely cripple it. The result has seen neighboring venues, such as Vietnam and Manila profiting from the exodus of players and operators.

Official figures reveal that the gambling revenues in July 2015 were down by a whopping 34.5%, as compared to those of July 2014. These show a continuing trend, with June 2015 showing a 36.2% decline, as against those of June 2014.

Though, Galaxy is looking elsewhere, several others still believe in Macau and are going ahead with their projects. These include Melcro Crown entertainment Ltd and its new $3.2 Bn casino, Sands China Ltd. Chairman Sheldon Adelson’s $2.7 billion Parisian Resort and Steve Wynn’s Wynn Palace, all of which are scheduled to open during the months till the mid of 2016.