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Macau casino margins to remain tight; SJM an outlier: Jefferies

Viviana Chan
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Macau casino margins to remain tight; SJM an outlier: Jefferies

Macau’s gaming operators are expected to face continued pressure on adjusted EBITDA margins through 2026, with profitability likely to remain at levels similar to the fourth quarter of 2025 due to intense competition, according to analysts at Jefferies. 

The brokerage added that geopolitical tensions are also weighing on market sentiment, further clouding the outlook.

In a research note on Wednesday, analysts Anne Ling and Jingjue Pei said that while gross gaming revenue (GGR) growth remains resilient, the recovery continues to be driven by VIP play, which typically involves higher promotional activity and tighter margins. ‘Promotions and competition remain,’ the analysts noted.

For the first quarter of 2026, Macau’s GGR rose 14 percent year-on-year to MOP66 billion ($8.2 billion), supported by a strong January performance linked partly to the timing of the Chinese New Year holiday. Growth moderated in February and March, but Jefferies maintained its full-year forecast of 6.8 percent GGR growth, slightly ahead of market expectations of 6 percent.

Macau’s Ponte 16 casino ends 17-year run

Satellite closures to lift SJM profitability

SJM Holdings stands out as a potential exception. The brokerage expects the operator to benefit from the closure of satellite casinos, which is anticipated to improve cost efficiency and support margin expansion. 

Jefferies forecasts SJM’s adjusted EBITDA to grow by 13 percent, 14 percent and 8 percent in 2026, 2027 and 2028, respectively, with margins rising from 14 percent to 16 percent over the same period. The firm also expects SJM’s flagship property Grand Lisboa Palace to capture around 3 percent market share by 2026, providing an additional earnings driver.

Galaxy Entertainment Group, Galaxy Macau

Galaxy pushes for table expansion 

Among operators, Galaxy Entertainment remains a top pick for Jefferies, supported by its capacity expansion and positioning in the premium segment. The company is seeking to differentiate through higher-end offerings, including increasing room sizes in its Phase 4 development, reducing total keys to about 1,350 from 1,500, with completion targeted in 2027.

A key focus is capacity expansion. Jefferies indicates that Galaxy is lobbying the Macau government for additional gaming tables to support its upcoming Phase 4 of Galaxy Macau, highlighting constraints on table allocation as it scales up operations. The company is targeting a 20 to 22 percent market share ahead of the project’s completion.

Macau-GGR-March-2025

Sands, Wynn and MGM emphasize EBITDA and premium segments

Sands China and Wynn Macau, meanwhile, are pursuing strategies centered on earnings growth and premium positioning. Sands China continues to prioritize absolute EBITDA generation over margin expansion, maintaining a target run rate of $2.7 billion despite potential quarterly volatility.

Wynn Macau is similarly focused on premium mass customers, with investments aimed at enhancing high-end offerings, including upgrades to gaming areas and hotel inventory. The operator maintains an emphasis on EBITDA and margin rather than market share growth.

MGM China is also maintaining a focus on premium mass, targeting stable mid-teen market share and EBITDA margins in the mid- to high-20 percent range. Management has described competition as ‘rational’ in recent quarters, with reinvestment levels remaining broadly stable, while the group continues to expand its premium offerings, including additional suites at MGM Cotai.

Across the sector, market share trends remain fluid. Jefferies expects Sands China and Wynn Macau to post sequential gains in the first quarter, while Galaxy, MGM China and SJM may see modest declines.

MGM China share jumps to 18% in March, tops peers: UBS

Viviana Chan
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MGM China share jumps to 18% in March, tops peers: UBS

Macau gaming operator MGM China is likely to be the biggest market share gainer in Macau’s gross gaming revenue (GGR) market, according to an investment memo by UBS, which highlighted a sharp rebound in the operator’s share of industry gaming revenue in March.

Analysts, including Angus Chan, Perry Yeung, Ryan Lau, and Samuel Yip, said MGM China’s share of Macau GGR rose to 18 percent in March 2026, up from 14 percent in February, representing a 4.0 percentage point month-on-month increase.

UBS described MGM as the ‘biggest market share gainer’ for the month, attributing the increase primarily to ‘hold volatility,’ or fluctuations in gaming win rates. The gain helped narrow MGM China’s quarterly market share decline to around 30 basis points quarter-on-quarter in the first quarter of 2026.

The improvement came at the expense of key peers. Galaxy Entertainment saw its share of Macau GGR fall to 19 percent in March from 23 percent in February, a decline of 4  percentage points, while Sands China dropped to 24.5 percent from 26.5 percent, down 2 percentage points over the same period.

Other operators recorded more modest gains. Melco Resorts increased its market share to 15.5 percent in March, up 1  percentage point month-on-month, while SJM Holdings rose to 10.5 percent, also up 1 percentage point, partly offsetting earlier declines linked to satellite casino closures.

UBS noted that some of the monthly fluctuations were driven by short-term factors, including VIP hold normalization, but said MGM China’s rebound highlights its ability to capture a larger share of Macau’s gaming revenue in a volatile operating environment.

Daily Asia Gaming eBrief: Hong Kong shelves basketball betting over prediction market fears

AGBrief Editorial
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Daily Asia Gaming eBrief: Hong Kong shelves basketball betting over prediction market fears
Good morning. Pause and think. Hong Kong authorities have put plans for basketball betting on hold, citing concerns that prediction markets may attract users to unregulated platforms and indirectly support illegal wagering. With global trading volumes surging and sports-related activity gaining traction, officials said current conditions are not yet suitable for a regulated rollout. Meanwhile, in the Philippines, land-based operator Okada Manila reported a 17.2 percent year-on-year drop in first-quarter GGR to $108.1 million, with EBITDA down 53.3 percent, while online-focused PhilWeb returned to profit, with revenue jumping 30.4 percent in 1Q26, driven by eGaming growth.

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Hong Kong legalizes basketball betting

Hong Kong shelves basketball betting over prediction market fears

Hong Kong has paused its planned rollout of basketball betting amid growing concerns that prediction markets could fuel illegal gambling. Authorities said the rapid expansion of these platforms, particularly in sports-related activity, creates regulatory uncertainty. Despite earlier legislative approval intended to channel demand into legal channels, officials believe conditions are not yet suitable. The government will conduct further study before moving forward, prioritizing safeguards to prevent unintended support for unregulated wagering.

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ISI Sports upgrades Casino Del Sol’s betting kiosks with an advanced sportsbook platform

AGBrief Editorial
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ISI Sports upgrades Casino Del Sol’s betting kiosks with an advanced sportsbook platform

ISI Sports has completed the conversion of all sports betting kiosks at Casino Del Sol to its next‑generation sportsbook platform. The conversion is the latest in a series of retail sportsbook installations ISI Sports has completed across the U.S. and the Caribbean in recent weeks.

In southwest Tucson, Casino Del Sol—Arizona’s only Forbes Four Star and AAA Four Diamond casino resort—now offers thrilling live sports action with real‑time odds and dynamic updates powered by ISI Sports’ industry‑leading platform.

“The conversion to ISI Sports’ platform was smooth, efficient and immediately noticeable in terms of performance and guest engagement. We look forward to a long and successful partnership as we continue to enhance everything Casino Del Sol has to offer,” said Amanda Lomayesva, Interim CEO, Casino Del Sol.
 
“We are excited to partner with Casino Del Sol to convert its existing, expensive sportsbook platform to ISI Sports’ more advanced and much more economically feasible platform,” shared ISI Sports President Bill Stearns. “At ISI Sports, our mission is to provide casinos of all sizes the perfect sportsbook solution for their guests in an extremely cost-effective manner, delivering real ROI, whether through new installations or through conversions like this one at Casino Del Sol.” 

[Read more: Internet Sports International unveils next‑gen retail and mobile sportsbook innovations at IGA 2026

ISI Sports’ award-winning wagering kiosks empower casinos of all sizes and budgets to quickly and seamlessly offer the excitement of sports betting to their guests in the sportsbook, on the main casino floor, in a sports bar, or anywhere on property. ISI Sports’ kiosks are fully automated and occupy an efficient 3 ft by 3 ft space per unit, enabling easy placement in virtually any area of the property. The platform both novice and veteran bettors alike a wide range of betting propositions.

Okada Manila GGR falls 17.2% in 1Q26 as Entertainment City correction persists

Viviana Chan
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Okada Manila GGR falls 17.2% in 1Q26 as Entertainment City correction persists

Gross gaming revenue (GGR) at Okada Manila declined 17.2 percent year-on-year in the first quarter of 2026, reflecting continued market pressure in Manila’s Entertainment City, according to preliminary results released by operator Universal Entertainment Corp.

The integrated resort, operated by Tiger Resort, Leisure and Entertainment, Inc. (TRLEI), reported GGR of PHP6.47 billion ($108.1 million) for the three months to March 31st, down from PHP7.81 billion ($130.5 million) a year earlier. Total revenue fell 15.3 percent to PHP7.41 billion ($123.8 million), while adjusted segment EBITDA dropped 53.3 percent to PHP830 million ($13.9 million), indicating margin pressure amid softer gaming volumes.

The decline was broad-based across gaming segments. VIP table games revenue fell 19.0 percent year-on-year to PHP1.44 billion ($24.0 million), while mass table games revenue decreased 24.2 percent to PHP2.30 billion ($38.5 million). Gaming machine revenue proved more resilient, declining 8.9 percent to PHP2.73 billion ($45.6 million).

Operational data showed weaker volumes across key segments. VIP rolling chip turnover declined significantly alongside a lower win rate of 2.5 percent, down from 3.3 percent a year earlier. Mass table drop also softened, although win rates remained relatively stable across both live and online channels.

Non-gaming revenue remained broadly flat at PHP944 million ($15.8 million), supported by stable hotel and ancillary operations. Hotel performance showed mixed trends, with average daily room rate rising slightly to PHP10,138, while occupancy eased to 83.9 percent from 85.2 percent a year earlier. Revenue per available room (RevPAR) also edged lower to PHP8,502.

Visitor traffic remained relatively stable at 1.41 million for the quarter, compared with 1.40 million in the same period last year, suggesting that the revenue decline was driven more by weaker spend and gaming activity rather than a significant drop in footfall.

The results come as Manila’s integrated resort market faces ongoing headwinds, with pressure on key customer segments and softer demand conditions weighing on gaming performance, particularly in the VIP segment.

IMF raises Macau growth forecast to 3% for 2026

Viviana Chan
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IMF raises Macau growth forecast to 3% for 2026

The International Monetary Fund (IMF) has raised its forecast for Macau’s economic growth to 3 percent in 2026, marking an upward revision of 0.2 percentage points from its previous estimate, according to its latest World Economic Outlook released in April.

The updated projection points to a steady recovery in the city’s economy. The IMF also expects consumer prices in Macau to increase by 1.8 percent in 2026, suggesting a relatively moderate inflation environment.

According to the report, Macau’s nominal GDP is projected to reach $54.23 billion in 2026, while GDP per capita is expected to stand at $76,450. On a purchasing power parity basis, GDP per capita is forecast at $140,420.

The improved outlook for Macau comes as the IMF adopts a more cautious stance globally, cutting its 2026 world growth forecast to 3.1 percent amid concerns that conflict in the Middle East could disrupt energy markets and push up prices.

The fund said rising geopolitical risks have made projections more uncertain, with potential spillovers from higher oil and commodity prices. While Macau’s recovery remains on track, external factors may continue to influence the pace of growth.

Philippines logs 1.76M foreign visitors in 1Q, up 2.6% year-on-year

AGBrief Editorial
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Philippines logs 1.76M foreign visitors in 1Q, up 2.6% year-on-year

The Philippines recorded just over 1.76 million foreign tourist arrivals in the first quarter of 2026, representing a 2.6 percent increase year-on-year, according to data released by the country’s Department of Tourism. 

The growth was supported by gains across most key markets, although declines from South Korea and mainland China continued to weigh on overall performance.

Including overseas Filipinos, total arrivals reached nearly 1.89 million in the January–March period. Arrivals by overseas Filipinos rose 1.9 percent year-on-year to 126,091.

The United States remained the largest source market, contributing 393,137 visitors, or 20.8 percent of total arrivals, up 5.9 percent from a year earlier. South Korea ranked second with 385,569 arrivals, accounting for 20.4 percent of the total, but declined 10.2 percent year-on-year, extending a downward trend observed in 2025.

Japan was the third-largest market, with 144,509 arrivals, up 7.8 percent year-on-year. Other markets also recorded growth, including Canada, Australia, and the United Kingdom, with increases of 16.3 percent, 13.4 percent, and 3.2 percent, respectively.

In contrast, arrivals from mainland China fell 19.8 percent year-on-year to 46,553. Taiwan showed strong growth, rising 26.3 percent to 66,818 visitors.

For full-year context, the Philippines received approximately 5.94 million foreign tourists in 2025, slightly higher than the nearly 5.93 million recorded in 2024.

Indonesia freezes over 33,000 bank accounts in latest push against illegal online betting

Frank Schuengel
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Indonesia freezes over 33,000 bank accounts in latest push against illegal online betting

Indonesia’s financial services regulator has blocked more than 33,000 bank accounts suspected of links to online gambling, as authorities continue to tighten enforcement against so-called “judol” activity.

The Otoritas Jasa Keuangan (OJK) said it had frozen 33,252 accounts, up from a previous tally of 32,556, following enhanced due diligence (EDD) measures imposed on banks. OJK’s Chief Executive of Banking Supervision, Dian Ediana Rae, said the actions were part of broader efforts to combat online gambling, which authorities view as having a significant impact on the economy and financial system.

“Related to the eradication of online gambling, which has wide-ranging effects on the economy and financial sector, OJK has requested banks to carry out enhanced due diligence or blocking of 33,252 accounts indicated to be linked to online gambling,” Dian said during a March 2026 monthly board meeting press conference in Jakarta.

Alongside enforcement measures, OJK has also taken action in the banking sector, revoking the licenses of six rural banks (Bank Perekonomian Rakyat, or BPR) between January and March 2026 as part of its regulatory and consumer protection mandate.

Institutions affected include PT BPR Koperindo Jaya in Central Jakarta and PT BPR Pembangunan Nagari in Agam Regency, West Sumatra. OJK said it continues to coordinate with the Lembaga Penjamin Simpanan (LPS) in handling issues related to rural and sharia rural banks, in line with Law No. 4 of 2023 on Financial Sector Development and Strengthening.

Dian added that maintaining the integrity of Indonesia’s financial system requires ongoing coordination with the Financial System Stability Committee (KSSK), the government, parliament, law enforcement agencies and other stakeholders.

PhilWeb 1Q26 revenue jumps 30.4% on eGaming growth, returns to profit

Viviana Chan
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PhilWeb 1Q26 revenue jumps 30.4% on eGaming growth, returns to profit

Philippines-listed gaming technology provider PhilWeb Corp reported a sharp year-on-year increase in revenue for the first quarter of 2026, driven by its eGaming services segment and supported by new regulatory accreditation and partnerships.

Revenue for the three months ended March 31 reached nearly PHP233.1 million ($3.9 million), up 30.4 percent from a year earlier, according to its quarterly filing. The growth helped the company return to profitability, posting net income of PHP13.9 million ($230,000), compared with a net loss of PHP25.5 million ($430,000) in the same period last year.

The company said revenue expansion was primarily supported by its e-Gaming Solutions business, which provides technology and operational services to licensed gaming operators.

Operating performance also improved. EBITDA reached PHP23.5 million ($390,000), reversing from negative PHP3.0 million ($0.05 million) a year earlier. Costs and expenses rose to PHP215.1 million ($3.6 million) from PHP176.9 million ($3 million), driven by ongoing business expansion, but were offset by stronger top-line growth.

PhilWeb highlighted that during the quarter it secured accreditation from the Philippine Amusement and Gaming Corp (PAGCOR) as a gaming affiliate and support service provider. The filing stated: ‘This accreditation enables the company to deliver technology and operational services to licensed gaming operators within PAGCOR’s regulated ecosystem.’

The company has recently expanded its partnerships, working with integrated resort operators such as Newport World Resorts and Okada Manila in Metro Manila, as well as Hann Resorts in Clark, and gaming equipment provider FBM Philippines. It also supplies electronic gaming systems to PAGCOR-accredited venues and operates within the electronic bingo segment.

The company also formed strategic partnerships with several casinos for the operation and management of regulated online gaming platforms. ‘Under these agreements, the group provides end-to-end operational and technology services, including systems integration and regulatory-compliant support,’ it said.

PhilWeb noted that its platform allows licensed operators to access a range of digital gaming content and infrastructure, reinforcing its role within the regulated gaming value chain.

The company said it will focus on expanding partnerships, enhancing platform capabilities, and leveraging its PAGCOR accreditation to grow within the regulated gaming market.

Kambi’s Abios strikes new esports data partnership with Google

AGBrief Editorial
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Kambi’s Abios strikes new esports data partnership with Google

Kambi Group’s esports division Abios has signed a multi‑year data partnership with Google, under which it will supply its leading esports data coverage to power and enhance a range of Google products and user experiences. 

Abios, Kambi’s esports division, signs data partnership with Google

Under the agreement, Abios’ comprehensive esports data will soon launch on Google across the four most popular global esports titles — League of Legends, Counter-Strike, Dota 2 and VALORANT. The data package spans scheduling, fixtures, competitive statistics, player and team data, and scoring information, enabling Google to bring richer esports features to millions of fans worldwide via products including Google Search and the Google App. 

Werner Becher CEO Kambi Group
Werner Becher, CEO, Kambi Group

Abios delivers enterprise-scale esports solutions worldwide, including odds, widgets, and data feeds across all major esports titles. As a leading esports data provider, the Kambi esports division combines deep domain expertise with robust infrastructure to help partners engage with esports fans at scale with extensive, accurate, and title-specific data. 

Commenting on the landmark collaboration, Werner Becher, CEO of Kambi Group, said: “Partnering with Google is a significant milestone for Kambi and Abios, and a strong endorsement of the advanced data infrastructure and expertise we have developed over many years. With Google’s global scale, this collaboration will help elevate the way esports data is accessed and experienced by audiences around the world.”  

 Marvin Brischke, EMEA Sports Partnerships Lead at Google, added: “Esports continues to grow in popularity globally, and we’re pleased to work with Kambi and Abios to improve the breadth of esports information available to our users.”

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