Asia-Pacific casino operators are expected to face softer demand and increasing cost pressures over the next 12 months. This is because macroeconomic uncertainty, regulatory changes, and higher operating expenses weigh on industry performance, according to S&P Global Ratings.
In its Asia-Pacific Sector Roundup Q3 2026 report, S&P said the region’s gaming sector is entering a period of more moderate growth. Accordingly, operators are facing a combination of weaker consumer spending and rising capital investment requirements.
Macau Growth Expected to Moderate
S&P forecasts Macau’s gross gaming revenue (GGR) growth will slow in the coming quarters. This is because the market faces a tougher comparison base and softer demand.
Despite the moderation, the agency expects annual GGR growth of 5% to 7%. This is supported by continued visitor arrivals and stable demand from premium mass players.
S&P also warned that higher oil prices could reduce discretionary travel spending. In particular, price-sensitive mass-market customers are likely to be more affected than premium mass or VIP segments.
Mixed Outlook Across Asia-Pacific
The report projects modest growth for casino markets in Singapore and Malaysia. This growth is supported by stronger tourism, property upgrades, and Malaysia’s tourism promotion initiatives.
In the Philippines, easing visa policies and a recovery in online gaming are expected to support renewed GGR growth.
Meanwhile, casino markets in Australia and New Zealand are expected to remain under pressure. Stricter regulations, including mandatory carded play, cash restrictions, and increased anti-money laundering compliance requirements, continue to affect revenue and profitability.
Rising Costs and Investment Requirements
S&P expects operators across the region to face higher marketing, operating, and energy costs as competition intensifies.
In Macau, increasing promotional spending could place additional pressure on margins as operators compete for premium mass customers. Energy costs may also affect profitability in markets with stricter efficiency requirements, including the Philippines and South Korea.
The agency also highlighted capital expenditure as a key challenge. Major integrated resort developments in Japan, the United Arab Emirates, and New York are expected to drive significant investment by international gaming operators throughout 2026.
