A Model Explaining Table Games Revenues on Main Gaming Floor of Macau Casinos

Despite the monthly year-on-year drop in gaming revenues for 18 consecutive months, casino operators in Macau keep opening new properties and adding more inventory to already excess supply of tables. Yet, a comprehensive understanding of the drivers of table game revenues eludes many casino operators. Gaming tables account for around 90 percent of all gaming revenues in Macau, while slots, which generate most of the revenues in markets such as the U.S., generate only around five percent of total gaming revenues. It is therefore imperative that casino operators have a holistic understanding of the determinants of table game revenues. This presentation develops a comprehensive model of the factors that influence table game revenues on the main gaming floor in Macau casinos and the interrelationships across these factors. Some of the factors discussed in the presentation include table minimum, main gaming floor customer service, main gaming floor physical environment, player reinvestment rates, and number of hands dealt per hour. Ways in which each of these factors can be measured are also suggested. This model will assist casino operators in making their table games operations more synergistic and more profitable