Galaxy Entertainment Group is one of the largest Macau-based gambling brands in the world, having set up lucrative partnership deals with Société des Bains de Meret duCercle des Étrangers à Monaco or SBM for short. SBM owns and also operates some of the oldest and most profitable casinos throughout Monaco. This also includes the very famous and historic Casino de Monte Carlo.
The deal between Galaxy Entertainment Group and SBM benefits both parties very well since the Macau giant can enjoy profits (5% ownership) from some of Europe’s largest and most successful casinos, while SBM gets to expand its influence into the much-coveted Asian gambling markets. Aside from increased profits and an expanded influence for both entities, the marriage also makes for one of the most potent gambling groups in the world today. Now, the newly formed Galaxy-SMB merge has set its sights for new, lucrative markets including Japan’s in demand gambling licenses.
Strength in Numbers
According to a recent interview with Jean Louis Masurel, SBM’s General Manager, forming a partnership with one of Asia’s largest gambling and entertainment groups was a key move. Masurel went on to say “We wanted to expand in Asia, and we decided it would be stupid to try and do it alone. It wouldn’t make sense if we had neither the human nor financial resources to do so. So that’s why we wanted to have a partner.”
Masurel’s sentiments were echoed by Francis Lui, Galaxy Entertainment Group’s vice chairman who affirmed that both SBM and Galaxy were on the same page, adding that Galaxy could see the enormous potential that the Japanese gambling markets held for both partners. By partnering with Societe des Bains de Mer, Galaxy believes that their chances of winning a Japanese casino license are multiplied considerably.
Uphill Battle
Even with the combined efforts of two of the gambling industry ’s heavyweights, the bid for a Japanese gambling license may still be an uphill battle. One of the main reasons for this has to do with the recent legal revisions in the Japanese gambling industry. The upshot of which means that only three gambling licenses or contracts to local and/or international casino operators. Winners of the much sought after gambling licenses will be able to set up casino resorts in various parts of an already seemingly overcrowded landscape, where prime property is at a premium.
Among SBM and Galaxy’s biggest competition, both the mighty MGM Resorts International and the Wynn Resorts Group are bidding for the same, highly prized Japanese gambling licenses. Sands Corporation has also recently thrown their hat into the ring, making the competition even stiffer. MGM recently upped the ante by publicly stating that they would be more than willing to invest upwards of ¥ 1 trillion to get licenses to build integrated resorts in Japan. However, this is not likely to scare off Galaxy Entertainment Group, who has already reported positive growth in revenue for 2018, perhaps giving them the necessary boost to succeed over their rather substantial competitors.
