Macau’s dominance in the Asian gaming industry is assured going forward, with no jurisdiction able to match its advantages. However, new contenders are aiming to take their piece of the pie, and disrupt the current state of affairs, according to executives and analysts at G2E Asia.
At the “Trends in Asia Gaming Markets” panel, held at The Venetian Macau, top industry representatives debated the trajectory of gaming revenue in Macau and the broader reconfiguration of Asia’s gaming hierarchy.
Ed Bowers, President of Global Development at MGM Resorts International, expressed concern over Macau’s recent performance, noting the region’s post-pandemic struggles to pivot away from high-rolling VIP clientele toward broader tourism appeal.
“We can see that the Macau gaming revenue is decreasing,” Bowers said. “The government and the six concessionaires are trying their best to bring in concerts and non-gaming events. But the tourist base isn’t expanding as much as expected. So we have to ask — is it the audience we’re targeting? Or is it the quality of entertainment that’s falling short?”
Niall Murray, Chairman of Murray International Group, described the current period as a “necessary adjustment” away from junket-led VIP play to a more sustainable, mass-market model. But the transition isn’t without growing pains.
“If we’re doing premium mass or broad mass, it’s going to come from international money,” Murray said. “But we don’t have the infrastructure to handle 60 million visitors a year. The Ferry Terminal and airport were built for that, yes, but on the ground, congestion is becoming a real problem.”
He also criticized what he sees as a lack of ambition in non-gaming developments. “You can’t just pour concrete next to a ballroom and call it a world-class entertainment venue,” he said, referring to the new Cotai large-scale concert venue. “We need real attractions that are competitive with what’s available across the border.”
Murray warned of rising unregulated accommodations in Hengqin, with an estimated 25,000 illegal or semi-legal hotel rooms. “That’s dangerous,” he added. “And unless we improve hotel capacity in Macau itself, day trips will keep increasing while overnight stays drop.”
Regional rivals eye the top spot
As the session concluded, panelists were asked to rank Asia’s top gaming markets 10 years into the future.
Bowers named Macau as number one, but gave a bullish nod to Japan and Thailand: “If Japan ends up with more than one casino, it could take second. Thailand is right behind. I’m optimistic about it.”
Meanwhile Murray agreed Macau would retain its lead but flagged Thailand as a potential disruptor if legislation is passed.
“They’ll move faster than Japan. If they greenlight multiple casinos, they’ll be a serious competitor,” he said. He was less enthusiastic about Japan’s sluggish regulatory progress: “I’m afraid we’ll be stuck with just one operator for a while.”
Dhruv Garg, a policy expert from the Indian Governance & Policy Project, also championed Thailand. “It’s more affordable and attractive for Indian travelers than even domestic destinations,” he said. “And if a few Indian states open multi-casino resorts, they could challenge Singapore on domestic volume alone.”
Paul Bromberg, of Spectrum Gaming Group, meanwhile kept his forecast more conservative: “Macau. Singapore. Philippines. Japan will stay in fourth as long as there’s just one casino,” indicated the veteran.
But perhaps the most provocative prediction came from Vitaly Umansky, Senior Analyst at Seaport Research Partners, who suggested that the Philippines could overtake Singapore, driven by its burgeoning online gaming sector.
“If that growth continues,” Umansky questioned, “and if regulatory trends hold, the Philippines has the potential to be Asia’s number two gaming jurisdiction within a decade.”
