ToCasino.net Online Casino

Lui Che Woo, chairman of Galaxy Entertainment Group

In spite of a recent slowdown in revenues from high rollers, billionaire Lui Che Woo now expects to see a recovery in growth in Galaxy Entertainment Galaxy Entertainment Group’s VIP business this year.

There have been positive signs that the VIP market in both of Galaxy’s flagship properties is regaining momentum, said Robert Drake, the company’s chief financial officer.

Two-thirds of Macau’s gaming revenue comes from the VIP market, high stakes gamblers, mostly from China, who rely on junket operators for credit.

The Hong Kong-listed casino operator relies on its VIP rooms to generate the majority of its revenue at the Galaxy Macau Resort in Cotai and the StarWorld Hotel and Casino in downtown Macau.

“We are very pleased with how the market has done so far this year, we are sticking to our guns and say that it’s a high single-digit growth,” said Drake.

Galaxy’s revenue jumped 15% in the first quarter this year to $15.2 billion Hong Kong dollars ($2 billion), but its VIP business only grew 0.3% from the previous period.

“We’re not surprised to see that given the flow of macroeconomic conditions things were kind of flat,” said Drake. “People just tend to be more cautious in periods of uncertain times like these.”

Galaxy plans to invest another $50 to $60 billion Hong Kong dollars ($6.4 to $7.7 billion) in Phases 3 and 4 of Galaxy Macau’s expansion. Phase 2, which is slated for completion in mid-2015, will be the next major project to open in Macau.

Lui was ranked the 5th richest person in Hong Kong this year, with a net worth of $9.5 billion. The 83-year-old tycoon’s son, Francis Lui, is Galaxy’s deputy chairman.