Paradise Entertainment Limited, the company who supply most of the casinos in Macau, is planning to expand its efforts in the coming year, targeting overseas casinos as a major area of growth. As such, they have predicted an increase in sales of 35% for the year to come, despite the predicted rise in mobile casinos across the globe.
Despite Chinese gambling laws preventing gamblers from playing at online casinos, the number of gaming machines in Macau is dwarfed by the number in the massive US market, something that the company is looking towards.
Managing Director Jay Chun has been targeting the US market, and he said: “There are about one million gaming machines in the U.S. right now, whereas Macau only has 16,000. The U.S. market will definitely be our priority.”
Paradise Entertainment provides machines to companies such as Sands China ltd., SJM Holdings Ltd., and Melco Crown Entertainment Ltd., and has benefited from the sudden rise in Macau’s fortune, transforming the former Portuguese colony into the largest gambling hub in the world. It seems unlikely that the rise in mobile casino gambling will affect Macau, with Chinese high rollers being the major source of income.
The USA is a different story, however, and it remains to be seen what effect legalized online gambling will have on the land based industry. Yet with Paradise Entertainment’s recent growth, the company can afford to take a few risks as it looks to expand further.
Currently, they control 20% of the slot machine market in Macau, as well as 60% of the electronic table game market, but the company expects sales of slot machines to rise above 40% for next year. With the ongoing expansions of casinos on Macau’s strip, this growth is hardly likely to slow any time soon, giving Paradise some flexibility when it comes to foreign based clients.