Asia-Pacific casino operators face moderating demand and rising cost pressures over the next 12 months, as macroeconomic uncertainty, higher oil prices, regulatory controls and capital spending weigh on sector earnings, according to S&P Global Ratings.
In its July 1st Asia-Pacific Sector Roundup Q3 2026 report, S&P gaming analyst Flora Chang described the regional gaming sector as facing ‘moderate demand amid macro challenges’.
S&P said Macau’s gross gaming revenue growth is likely to moderate in the coming quarters because of softer demand and a higher comparison base. However, the agency said growth should remain at 5 percent to 7 percent, supported by good visitation and steady premium mass demand.
The report also warned that high oil prices could soften travel demand if consumers cut discretionary leisure spending. S&P said demand from price-sensitive base mass players would be more affected than premium mass or VIP demand.
Gaming revenue in Singapore and Malaysia should edge higher, supported by stronger visitation, asset upgrades and the Visit Malaysia campaign. In the Philippines, supportive visa policies and a recovery in online gambling could support a return to GGR growth.
However, casino GGR in Australia and New Zealand is likely to remain constrained by regulatory requirements. The agency said mandatory carded play, cash limits and higher anti-money laundering compliance spending would weigh on gaming revenue and margins in both markets.
Cost pressures are also expected to rise. S&P said higher marketing and operating expenses, as operators compete for market share, could intensify competition for premium mass gaming revenue in Macau. Rising energy costs may also reduce cash flows in markets with energy-saving mandates, including the Philippines and Korea.
Capital expenditure is another risk. S&P said projects in Japan, the United Arab Emirates and New York are likely to drive spending by operators including MGM, Wynn and Genting Bhd in 2026.
