Good Morning. To infinity and beyond. Macau’s casino industry is forecasted to experience significant profitability growth over the next decade, driven by a shift toward higher-margin mass-market play, operational efficiencies, and a regulatory environment that limits supply, brokerage Morningstar projects. At the same time, Citigroup estimates the SAR’s gross gaming revenue is expected to rise 6 percent year-on-year to $33.3 billion in 2026, supported by an expanded concert calendar and increased hotel suite supply. Meanwhile, in the Philippines, the Chairman and CEO of the Philippine Amusement and Gaming Corporation (PAGCOR) Alejandro H. Tengco has defended himself against allegations that his family’s construction company benefited from his position or political connections.
What you need to know
- Morningstar expects Macau casino EBITDA margins to climb to 33.7% by 2034, driven by mass-market growth and improved operating efficiency.
- Philippine gaming regulator chief Alejandro H. Tengco denied allegations that his family’s construction company benefited from his position.
- Citigroup projects Macau gaming revenue to rise 6% in 2026, driven by concerts, premium and mass spending, and expanded suite supply.
On the radar
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- Fitch upgrades Aristocrat’s rating over strengthened balance sheet.
- Convicted financial sues Sportsbet, Tabcorp, and Entain.
- Macau Cotai jewellery shop probed over $24M illegal money exchanges.
- India’s Supreme Court defers Online Gaming Law challenge to January.
AGB Intelligence
MACAU
Significant growth in Macau’s gaming margins by 2034
Macau’s casino industry is forecasted to experience significant profitability growth over the next decade, with adjusted EBITDA margins expected to rise from 27.6% in 2024 to 33.7% by 2034, driven by a shift toward higher-margin mass-market play, operational efficiencies, and a regulatory environment that limits supply. Morningstar projects a compound annual growth rate of 6.2% for industry-adjusted EBITDA, outpacing a 4.2% CAGR in gross gaming revenue. The mass-market segment, which comprised 88% of GGR in 2024, remains the primary driver of growth, especially as mainland China’s economic expansion and improved travel accessibility boost visitor numbers.
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