Studio City is likely to receive 150 gaming tables to start operating, according to the latest report of Deutsche Bank about the new Melco Crown property. Also, the investment bank says that the property will likely open in October. “Like Galaxy Phase II, checks suggest Studio City may receive roughly 150 tables. While not necessarily a big surprise, we do believe the prevailing view was that 150 would be the minimum for the new ‘free standing’ openings post the 150 table allocation to Galaxy at its Phase II opening”, the report by analysts Carlo Santarelli and Danny Valoy reads. Given the case this number proves accurate, then the decision may be a setback for co-Founder and CEO of Melco Crown Lawrence Ho. During the presentation of the first quarter results of the company, Mr. Ho said that he was expecting to receive authorisation to install more gaming tables than Galaxy, which received 150 tables. His expectations were based on the opinion that Galaxy Phase II is “an expansion with additional hotel rooms”, while “Studio City is the first integrated-resort to open in the city in the last three years”. However, in the view of the Deutsche Bank analysts the fact that the property will receive 150 gaming tables will be enough to manage the property smoothly. “If 150 tables proves accurate, for those who believe table capacity is an issue in the market, a group whom we are not amongst, the result could be disappointing. Furthermore, if accurate, we believe 150 will now serve as the baseline for expectations for future Cotai openings”, they explained. According to the same report, from the moment the casino operator has 150 tables guaranteed, it may consider dismissing junkets from the property and have direct VIP tables rather than VIP junket tables. “Assuming 150 tables is correct, our checks suggest Melco Crown may use 110 for mass play and 40 for premium mass and direct VIP. As the maths suggest, no tables would be earmarked for junket VIP play”, the analysts explained. Studio City will be the second project of Melco Crown to be developed in Cotai, following City of Dreams. The new property will have an investment of US$3.2 billion (MOP25.6 billion) and a total of 1,600 rooms. Previously, Lawrence Ho said it would have the capacity to accommodate around 500 gaming tables.
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