Shuffle Master Fills a Void in China's Gaming Market (SHFL FQ405 Conf Call Quotes)

Dec. 9.05 | About: SHFL entertainment, (SHFL)

Shuffle Master (ticker SHFL) develops, manufactures, and markets technology-based products for the gaming industry. One of those products is an automatic card shuffler used in casinos worldwide. Shuffle Master Chairman and CEO Mark Yoseloff talked about Macau's gaming market during management's Q4 2005 earnings conference call yesterday:

When I look at a market like Macau which is a 90% table game market, clearly shufflers, we are -- we're a leading supplier right now because of shufflers. But that's an area where electronic delivery of table games is going to be extremely important, really for two reasons.

In Macau…..the market is really two markets. The VIP gambling and the mass gambling. VIP gambling is generally done in private salons. It's very high-end gambling. Mass market gambling is relatively new to Macau. But one thing that I know with certainty is ultimately they're running into a problem with personnel. They don't have enough people to deal games. There's already a provision now where the mainland Chinese government will not permit citizens to emigrate to Macau for the purpose of dealing. So they're a little stuck for dealers. Along comes an electronic game, electronic dealer, it's a godsend, particularly for the mass market gambling end. Whereas in the private salons, when you have people playing $20,000 a hand, I think they want a live dealer dealing them but when they're paying $0.20 a hand or $1 a hand, they are going to be happy to have electronic dealing.

(Quotes are from the CCBN StreetEvents transcript.)

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