Citi: Sands China’s table side bets could lift market share

Sands China’s new jackpot on table side bets could boost the firm’s hold rates and gaming volumes, according to analysts at Citigroup.

Citi’s George Choi and Timothy Chau said the company had launched a new arrangement for its baccarat operations, incentivizing players to place more wagers on Lucky 6 and Lucky 7 side bets.

In a note issued today, Citi analysts said the more Sands is able to increase side bet participation, “the higher its market share could reach, given the significantly higher house advantage from side bets.”

They noted, however, that competitors would likely copy the strategy if it proves successful.

The new jackpot offers players the chance to win HKD5 million or more, provided they meet certain hand conditions, such as winning with a suited seven-over-six.

Citi’s note also observed that SJM Holdings’ Grand Lisboa Palace has fully implemented smart gaming tables in its mass baccarat areas.

Despite heavy rain ahead of Typhoon Wipha’s arrival over the weekend, Citi said casino activity was not hampered.

Macau authorities raised the Typhoon Signal No. 8 on Sunday, halting public transport and suspending service on the Hong Kong-Zhuhai-Macau Bridge, effectively stopping tourist flow.

The storm was later classified as Typhoon Signal No. 8 as it reached within 30 kilometers of the city but did not cause the same amount of damage as 2017’s Typhoon Hato.

The Gaming Inspection and Coordination Bureau (DICJ) chose not to order casino closures during the peak of Typhoon Wipha, fearing that shutting down could prompt guests to leave the premises.

Instead, the DICJ urged operators to keep gaming areas well-maintained and properly secured against typhoon impacts throughout the storm. The bureau also highlighted the need for staff to “take a rest” during the typhoon but did not provide specifics.

According to Citi’s July survey, positive momentum in the premium mass segment continued.

Citi analysts witnessed a player making a HKD1 million bet at Galaxy Macau’s Pavilion North area – one of 35 “whales” observed citywide, compared to 23 in July 2024.

The surge in such high-value players may be partially attributed to amenities like the new Capella hotel at Galaxy Macau.

“On our count, Galaxy has leapt to the pole position in our survey with a 35% share in total premium mass wager observed, likely reflecting Capella’s success in appealing to whales,” wrote the analysts.

Sands China ranked second in Citi’s latest monthly Macau table survey – with a 25% share, likely boosted by a “Sandy Lam concert at the Venetian Arena.” She was also due to perform on July 20, but that show was cancelled due to Typhoon Wipha.

Citi estimated total observed premium mass wagers at HKD16 million, up 32% year-on-year, with the number of players climbing 18% to 681. The average wager per player also increased 11%, hitting HKD23,536.