Galaxy Entertainment Group (GEG) announced impressive financial results for the second quarter and first half of 2024. In its press release, the group's adjusted EBITDA for Q2 reached HKD3.2 billion (€372.3 million), representing a 28 percent year-on-year increase and a 12 percent rise quarter-on-quarter. For the first half of 2024, adjusted EBITDA amounted to HKD6.0 billion (€698.2 million), also up by 37 percent compared to the same period last year. Group net revenue for H1 2024 hit HKD21.5 billion (€2.5 billion), a 37 percent year-on-year rise.  

Galaxy Entertainment Chairman Dr. Lui Che Woo attributed this success to robust growth across all segments. "We continued to drive every segment of our business and further improve our resorts," Lui remarked. He also noted that GEG’s resort hotels reported virtually 100 percent occupancy, a testament to the group's strong recovery post-pandemic.??

The group announced an interim dividend of HKD0.50 (€0.058) per share, payable in October 2024, highlighting GEG's confidence in its long-term outlook. Lui expressed optimism, saying, "These dividends demonstrate our confidence in the positive long-term outlook for Macau and the Company."  

GEG also updated its expansion plans, with the much anticipated Capella at Galaxy Macau set to open in mid-2025. In addition, Phase 4 of the resort will bring new family entertainment and non-gaming attractions, including a 5,000-seat theater and several high-end hotel brands.??

GEG praised the Central Government’s expansion of the Individual Visit Scheme (IVS), now covering 59 cities with a combined population of 500 million. Lui highlighted the relaxation of visa requirements, which he believes will further drive visitation to Macau.??

On the technological front, GEG implemented "smart tables" technology. The company completed backend system integration and customer database transfers and began rolling out smart tables at Galaxy Macau’s main gaming floor in early July. Lui expects the full implementation to be completed by the end of 2024.  

Galaxy Macau, the group's flagship property, saw its gross gaming revenue (GGR) surge to HKD8.86 billion (€1.03 billion) in Q2, with an EBITDA margin of 32 percent. StarWorld Macau also posted strong results, with GGR reaching HKD1.42 billion (€165.2 million) and an EBITDA margin of 29 percent. Smaller venues like Broadway Macau and the City Clubs also contributed positively, with Broadway Macau reversing losses and turning HKD12 million (€1.4 million) in adjusted EBITDA for H1 2024.  

GEG continues to prioritise non-gaming developments as part of its long-term strategy. "We are well advanced with the fitting out of Capella at Galaxy Macau and Phase 4, which has a strong focus on non-gaming," said Lui, reinforcing the group's commitment to entertainment and family-friendly experiences in addition to gaming.?

A report this weekend in the Financial Times confirmed that Macau is tightening its grip on unlicensed currency traders, the ripple effects on its casino industry and broader economy remain to be seen. The territory’s gamble on stricter regulations could either stabilise its financial system or drive gamblers to seek alternative, and potentially riskier, methods of funding their bets. These traders have long facilitated the flow of money for gamblers looking to bypass China’s stringent capital controls. The crackdown has sparked concerns about a potential regulatory clampdown that could impact the territory’s booming casino industry.

Macau, a former Portuguese colony, operates under a legal system distinct from mainland China and is the only place within the country where casino gambling is legal. The territory’s casinos are a major draw for millions of mainland Chinese visitors each year, contributing to an estimated gaming revenue of 216 billion patacas ($27 billion) in 2024, surpassing even Nevada’s earnings.

Unlicensed currency traders have been a crucial part of Macau’s gambling ecosystem, enabling tourists from mainland China to exchange their renminbi for the Hong Kong dollars used in casinos. However, policymakers in Macau’s semi-autonomous parliament recently announced that providing unauthorized currency-changing services within casino premises will now be a criminal offense. Offenders could face up to five years in prison and a ban of up to ten years from gambling sites.

This crackdown has already had a tangible impact on the market. Shares of Macau’s six casino operators have taken a hit, with a Bloomberg Intelligence gauge of Macau casino stocks dropping by about 7 percent in the past month. The move has also reignited fears of a renewed regulatory campaign similar to the one in 2021, which targeted underground finance networks facilitating capital flight from China.

“First they cracked down on the big fish, and now they’re going after the little ones,” remarked Ben Lee, managing partner at Macau-based consultancy IGamiX (pictured above). He noted that policymakers are particularly sensitive to the trade given China’s slowing economy. In June, China’s Ministry of Public Security called for a “high-pressure crackdown” to dismantle criminal gangs involved in illegal currency trading. By July, coordinated efforts between police in China and Macau had led to significant arrests in cities like Zhuhai, which borders Macau.

David Green of Newpage Consulting, a former advisor to the Macau government, pointed out that while money exchange gangs are not new, they were previously considered less of a concern compared to money laundering and underground banking. The 2021 crackdown on junkets, which were promoters that brought high-spending mainland gamblers to Macau, has now shifted focus to unlicensed money-exchange operators.

Analysts at JPMorgan estimate that only about 10 percent of Macau’s gaming revenue comes from in-casino unlicensed money exchange services. They caution that the crackdown might push gamblers to seek other financing routes, such as using mainland bank cards at local pawn shops or currency exchanges outside resort premises. Analysts have also noted that stocks like Sands China and Galaxy Entertainment are trading near or below their Covid-era lows, adding to the uncertainty and fragile investment sentiment in Macau’s gaming sector.

SiGMA East Europe Summit powered by Soft2Bet takes place in Budapest from 2 – 4 September

The highly anticipated African esports Championship is taking place at the Mohammed V Sports Complex in Casablanca, Morocco until 21 August. The event commenced with a grand opening ceremony yesterday.

Over 180 athletes from 17 countries are competing in five categories: CS2 Open, CS2 Women, MLBB Open, MLBB Women, and PubG Mobile. This tournament will highlight the rapid growth of eSports in Africa and serve as the second stage of the IESF African Regional Qualifiers, determining the final African participants for the World eSports Championship.

Hicham El Khlifi, President of the African Confederation of Digital Sports (ACDS) and the Royal Moroccan Federation of Electronic Games, stated, “Hosting the IESF Africa Esports Championship in Casablanca is a milestone for African Esports. It reflects our continent’s growing passion and potential in the digital sports arena. This event is more than a competition; it’s a statement of progress, showcasing the talent and spirit of African athletes to the world. We’re proud to lead this transformative moment for Esports in Africa.”

The top teams from this championship will represent Africa at the World Esports Championship in Riyadh, Saudi Arabia, in November 2024.

Bookies’ odds for 2024 African eSports Championship

Bookmakers are offering odds on various outcomes. Teams from South Africa and Egypt are currently favoured, given their strong performances in previous tournaments. Notably, the South African team, known for their strategic prowess in CS2, is a top contender. Meanwhile, Kenya’s Bilal Mohamed, last year’s champion, is also a favourite in the individual categories. Betting enthusiasts can find odds and place bets through major platforms like Bet365 and William Hill, which are providing comprehensive coverage and attractive offers for this event.

This tournament not only marks a significant milestone in African eSports but also showcases emerging gaming talent as these top teams compete for the opportunity to represent their countries on the global stage.

The African eSports Championship was established to expand eSports across the continent. Sponsored by various organizations, including the International Esports Federation (IESF) and local African businesses, the championship aims to provide a platform for African gamers to showcase their talents on a global stage.

Since its inception, the championship has seen significant milestones, including the first offline event in 2024. Last year, Bilal Mohamed from Kenya made history by becoming the first Kenyan to win an African title in eSports. This victory highlighted the increasing competitiveness and talent emerging from the African eSports scene.

SiGMA East Europe Summit powered by Soft2Bet, happening in Budapest from 2 – 4 September

Bilal Mohamed, a name now synonymous with excellence in African eSports, has made history as the first Kenyan to win the African esports Championship. Born in the UK, Bilal moved to Kenya at the age of seven, where he grew up and developed his passion for gaming. His journey from a casual gamer to a continental champion is both inspiring and remarkable.

Bilal’s first major milestone came in 2024 when he competed in the African eSports Championship held in Lagos, Nigeria. Facing off against Chukwudi Okoli, the reigning Nigerian champion, Bilal emerged victorious in a thrilling final of Street Fighter 6, winning 3-2. This victory not only crowned him as the African eSports champion but also marked a significant achievement for Kenya in the eSports arena.

Bilal’s success has attracted sponsorships from various organizations. Notably, he has been supported by the International Esports Federation (IESF) and local Kenyan businesses. These sponsorships have provided him with the resources needed to compete at the highest levels and continue his training

Bilal’s parents, both educators, instilled in him the importance of balancing academics with extracurricular activities. He attended Braeside Primary and High School before moving on to Peponi Secondary School. His academic journey continued at Strathmore University, where he pursued a Bachelor of Business Science in Financial Economics. Bilal’s analytical skills, honed through his studies, played a crucial role in his strategic approach to gaming.

Bilal ventured into eSports began in 2019, just a year before he started his undergraduate studies. What started as a hobby quickly turned into a serious pursuit as he competed online against players from Zambia, South Africa, and beyond. His dedication to improving his skills saw him spend countless hours practicing and analysing his gameplay..

Beyond his gaming prowess, Bilal is known for his disciplined approach to balancing his academic and gaming commitments. He often cites former professional boxer Muhammad Ali and basketball legend Michael Jordan as his inspirations, aiming to achieve similar dominance in eSports. Bilal’s ability to manage his time effectively has been a key factor in his success, allowing him to excel both academically and in his gaming career.

With his degree in Financial Economics and a prestigious eSports title under his belt, Bilal Mohamed is poised for a bright future. He continues to train rigorously, aiming to defend his title and represent Africa on the global stage. The potential of African gamers and the growing prominence of esports on the continent is reshaping the global esports industry.

Bilal Mohamed’s journey from a young gamer in Kenya to an African eSports champion is a story of dedication, hard work, and the pursuit of excellence. As he continues to break barriers and set new standards, he remains an inspiration to aspiring gamers across Africa.

SiGMA East Europe Summit powered by Soft2Bet, happening in Budapest from 2 – 4 September