In June 2002 the Macau Government granted a gaming concession to Galaxy Casino S.A. and in July 2004 Galaxy’s first casino was opened in Macau – the Waldo Casino. One year later the company was acquired by K.Wah Construction Materials Limited, which changed its name to Galaxy Entertainment Group Limited and began trading on the Hong Kong Stock Exchange.

On Friday the company announced the suspension of trading in shares ‘pending the release of an announcement in relation to a possible notifiable transaction of the Company involving the issue of new shares of the Company.’ According to market sources this involves bringing in a partner in order to break into the Japanese high roller market. By the end of next year the first phase of the GalaxyWorld Resort is scheduled to open on Macau’s Cotai Street, the first since the Venetian Macao opened in late August.

At present Macau attracts mostly visitors from Mainland China, with the Japanese representing just over 1% of tourist numbers. Galaxy, which now operates five casinos in Macau – opening the Rio, President, Grand Waldo and StarWorld casinos in 2006 – could be looking to tap this relatively unexplored market by introducing Japanese games and bringing in junkets from Japan.

With more casinos in the pipeline there will be fierce competition for high rollers as well as mass market play. Galaxy has been at the forefront of casino development in Macau since the Chinese ended the Ho monopoly five years ago. GalaxyWorld Resort is intended to be the jewel in the Galaxy crown, opening with 700 table games and 4,000 slot machines in a spectacular resort setting. Looking beyond China, from where visitors mainly come to gamble and not stay, makes good sense if the wider entertainment offering of the new casino resorts is to be successful. (E-10.09.07)

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