Macau’s Galaxy Entertainment Group is keen to make use of its cash-rich position to expand into the overseas market but is waiting for clear guidance on prospects to choose which location is best for a future integrated resort.
In statements at the group’s results release briefing last week, Chairman Francis Lui highlighted that for now it’s “a little bit too early” to decide if the Aichi prefecture – which is possibly planning a bid for an IR license – could be attractive.
The executive highlighted that “Japan is a rich country” with one of the world’s top economies and is “a really good market to be in”.
However, Lui noted “we need to understand where the locations are, what they have and who the partner is going to be”.
The chairman also noted that “we have to wait for Tokyo to come in”.
“We’re sitting on the fence. We’re very, very interested, but we need to know a little bit more about what’s going on first before we decide that we want to go in,” noted Lui.
“Japan, in itself, is going to be a very attractive proposition,” said the Galaxy chairman.
UAE a possibility, Thailand on the back burner
Francis Lui noted that the group is sitting on healthy cash and investment liquidity, with some HK$36.3 billion ($4.64 billion), so “we hope that with a very healthy balance sheet we would be able to develop these large projects” overseas.
Speaking of the Middle East, Galaxy’s chairman indicated that it was keeping its ear to the ground on possible developments beyond Wynn’s Al Marjan Island IR in Ras Al Khaimah. The UAE has floated the idea of a possible IR per emirate, and given Galaxy’s scale and cash-rich position it could be a strong contender.
“For any project, so long as it can help the future development of GEG, we certainly will consider such opportunities. We have never given up on any opportunity that was suitable for us,” highlighted Lui.
For Thailand, such an opportunity may be a long time coming, given the political shifts that distanced the expected legalization of entertainment complexes with casinos in the nation. Lui indicated that, due to the political changes, “we have to wait for a few more years before we put it back on the agenda”.
However, “Thailand is a very good tourism destination,” noted Lui.
Given its ongoing work on Phase 4 – scheduled to open in 2027, the chairman noted that the company “still needs some cash on hand to ensure completion”, before turning to new prospects outside of Macau.
“Looking around the whole of Asia, I don’t think that there’s any other place that is more attractive than Macau,” lauded Lui.
