Macau gaming operator Galaxy Entertainment Group (GEG) officially opened Phase 3 on Wednesday, with the goal of establishing a new cultural landmark in the gaming hub.

Galaxy Entertainment Group (GEG) has acknowledged that hotel capacity could become a significant constraint on Macau's long-term growth. The company is hopeful that further policy breakthroughs will facilitate the development of Hengqin, which could help alleviate some of the current limitations in the hotel sector.

Macau's gaming industry is expected to see low single-digit growth over the next few years, with total gross gaming revenue (GGR) projected to increase by 3 percent year-on-year through 2025 and 2026.

Analysts at Jefferies are largely in line with the Macau government’s estimates for gross gaming revenue in 2025, at $30.57 billion, a 2 percent increase from recently announced official estimates.

Galaxy Entertainment Group, despite being one of the few debt-free casino operators in Macau, has significant potential to enhance shareholder returns by incorporating low-cost debt into its capital structure.

The investment bank China International Capital Corporation (CICC) is optimistic about the growth of Macau’s gaming industry in the fourth quarter of 2024. Analysts predict a quarter-on-quarter increase of 4 percent and a year-on-year increase of 5 percent in total gross gaming revenue (GGR).

Macau gaming operators are intensifying their efforts to capture a larger market share by implementing various strategies to boost performance. 

Macau gaming operators have acknowledged macroeconomic challenges, including a consumption slowdown impacting tenant sales at their shopping malls. However, they maintain that gaming demand has remained resilient across all segments, with steady bet sizes and a continued increase in player count.

Despite October's Golden Week being nearly a month away, early indicators suggest strong visitation for Macau. A CLSA report highlights robust forward bookings, with 80 percent of tracked hotels already fully booked.

Galaxy Entertainment Group had much to be happy about when announcing its first half year results. The operator saw a 52 percent uptick in profit, on the back of a gross gaming revenue tally that reached $2.57 billion. The group is now focused on ramping up its newest offerings and preparing its Phase 4 - set to be more family-focused, but including gaming. Meanwhile, Thailand continues to see a push and pull regarding its proposed IR bill, as the removal of the casino-friendly Prime Minister raises succession questions.