S&P Global Sees Macro Pressures On Asia-Pacific Gaming

Asia-Pacific gaming is likely to face moderate demand over the next 12 months as fuel prices, higher operating costs, and regional geopolitical tensions weigh on the sector, according to S&P Global. In its third-quarter roundup of industrial sectors in the region, the credit specialist said the market would be dealing with macro challenges even as some jurisdictions still show growth potential.

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Fuel Costs And Travel Demand

Primary credit analyst Flora Chang, based in Hong Kong, said persistently high oil prices could soften travel demand as consumers cut back on discretionary leisure spending. She added that price-sensitive mass players would likely be more affected than premium mass or VIP customers.

S&P Global also pointed to energy costs as a possible drag on casino operations in markets that rely heavily on fuel imports. It said higher energy prices could lead to reduced operating hours and lower cash flows for casinos in places such as the Philippines and South Korea, where energy-saving mandates may also come into play.

The agency’s comments suggest that operating conditions across the region could remain uneven, with external cost pressures affecting both demand and margins.

Geopolitics And Project Timelines

The report also flagged possible effects from regional conflict on Wynn Resorts Ltd. Chang noted that persistent regional conflicts might lead to project delays and create worries over long-term operation safety at the company’s United Arab Emirates property.

The particular property was Wynn Al Marjan Island, a casino resort worth US$5.1 billion expected to be completed in 2027, of which Wynn Resorts has a 40% share. Wynn had already said on its first-quarter earnings call in May that it expected a modest delay in the opening of the project amid the conflict in the Middle East involving the United States and Iran.

S&P Global’s view adds another layer of caution to an already complicated development picture for operators with large projects underway. It noted that capital spending is likely to rise in 2026 as a number of major developments continue.

Spending Pressures On Operators

The credit house said projects in Japan, the UAE, and downstate New York would likely drive capital spending by operators next year. It cited MGM Resorts International, which is behind the JPY1.51-trillion MGM Osaka development in Japan, and Wynn Resorts, at its property in Ras al-Khaimah.

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It also cited Genting Bhd and its companies at the Resorts World New York City, which has a commitment to invest US$5.5 billion until 2030 and pay US$600 million license fee for a full-service casino license. S&P Global said the scale of new projects in New York would add material debt for Genting Bhd, while incremental earnings were unlikely to keep pace with spending.

Another company that received credit rating downgrades was Las Vegas Sands Corp, which was mentioned due to the spending commitment it had for expanding Marina Bay Sands in Singapore. The construction of the US$8-billion expansion began in July 2025 by the company.

S&P Global noted that there will be negative discretionary cash flows for the companies with big plans for expansions, such as Sands and MGM Resorts. That view reflects the pressure from heavy investment even where growth prospects remain intact.

Regional Outlook By Market

Macau remained a key focus of the report. S&P Global forecasted slower EBITDA growth within the territory over the next year because of increasing marketing and operational expenses. It added that such conditions could intensify competition for premium mass gaming revenue.

Even so, Macau’s GGR growth was expected to stay in the 5% to 7% range, supported by strong visitor volume and steady premium mass demand. By the third week of June, Macau had already recorded 20 million visitor arrivals for the year, of which 14.6 million, or 73.0%, came from the Chinese mainland.

S&P Global also said GGR in Singapore and Malaysia should edge up, helped by higher visitor volume and asset upgrades. In Malaysia, that also includes the Visit Malaysia campaign, while Resorts World Sentosa in Singapore is undergoing a SGD6.80-billion upgrade and expansion. For the Philippines, the agency said a supportive visa policy and recovery in online gambling could drive a return to growth in GGR.

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Source: GGR Asia