TLDR
- S&P Global expects moderate demand for Asia-Pacific gaming over the next 12 months due to fuel costs and regional tensions.
- Wynn Resorts may see delays at its Wynn Al Marjan Island project in the UAE tied to conflict in the Middle East.
- Capital spending is expected to rise in 2026 for MGM Resorts, Wynn Resorts, Genting Bhd, and Las Vegas Sands.
- Las Vegas Sands received a credit rating downgrade linked to its Marina Bay Sands expansion in Singapore.
- Macau’s gaming revenue is still forecast to grow 5% to 7%, supported by strong visitor numbers.
Casino operators across Asia-Pacific are bracing for a mixed year ahead. S&P Global released its third-quarter industry roundup this week, pointing to several cost pressures that could weigh on the sector.
The credit rating agency said demand will likely stay moderate over the next 12 months. Fuel prices, higher operating costs, and regional tensions were named as the main factors.
Hong Kong based analyst Flora Chang said high oil prices could reduce travel demand. She noted that consumers may cut back on discretionary leisure spending.
Price-sensitive mass market players are expected to feel this more than premium mass or VIP customers. Those wealthier segments tend to spend regardless of fuel costs.
Energy costs were also flagged as a concern for casino operations. This applies mostly to markets that import fuel, such as the Philippines and South Korea.
S&P Global said higher energy prices could force some casinos to reduce operating hours. Energy-saving rules in those markets may add to the pressure.
Casino Spending Plans Under Pressure
Wynn Resorts was named in the report over its Al Marjan Island casino resort in the United Arab Emirates. The project is worth $5.1 billion and Wynn holds a 40% stake in it.
S&P Global said ongoing regional conflict could delay the project and raise concerns about long-term safety of operations. Wynn had already flagged a modest delay on its earnings call in May.
Capital spending across the sector is expected to climb in 2026. Major projects in Japan, the UAE, and New York are driving much of that increase.
MGM Resorts is building the 1.51 trillion yen MGM Osaka development. Genting Bhd is behind Resorts World New York City, which carries a $5.5 billion investment commitment through 2030 and a $600 million license fee.
S&P Global said the scale of the New York project would add debt for Genting. It also said earnings growth may not keep pace with that spending.
Las Vegas Sands received a credit downgrade tied to its $8 billion expansion of Marina Bay Sands in Singapore. Construction on that project started in July 2025.
The agency said companies with large expansion plans, including Sands and MGM, are likely to post negative discretionary cash flow. This reflects the cost of heavy investment even where long-term growth looks steady.
Regional Outlook Varies By Market
Macau remains a central focus for the industry. S&P Global expects slower earnings growth there due to rising marketing and operating expenses.
Even so, gross gaming revenue in Macau is still forecast to grow between 5% and 7%. Visitor numbers and premium mass demand are supporting that outlook.
Singapore and Malaysia are also expected to see gaming revenue rise. Resorts World Sentosa in Singapore is undergoing a 6.8 billion Singapore dollar upgrade, while Malaysia is running its Visit Malaysia tourism campaign.
The Philippines could see a return to growth as well. S&P Global pointed to a supportive visa policy and a recovery in online gambling as reasons.
As of the third week of June, Macau had recorded 20 million visitor arrivals for the year. Of that total, 14.6 million, or 73%, came from mainland China.
