Asia-Pacific Casinos Face Slower Demand and Higher Costs

Casino operators across Asia-Pacific may face weaker demand and rising expenses over the next 12 months, according to S&P Global Ratings.

The agency expects Macau’s gaming revenue growth to slow because of softer demand and tougher comparisons with last year. Still, revenue could grow by around 5% to 7%, supported by steady visitor numbers and demand from premium players.

Higher oil prices are one of the main risks. More expensive travel could push consumers to cut spending on holidays and entertainment. S&P expects lower-budget players to be affected more than premium and VIP customers.

Singapore and Malaysia may perform better, helped by stronger tourism, casino upgrades and the Visit Malaysia campaign. The Philippines could also return to growth thanks to easier visa rules and a recovery in online gambling.

The outlook is weaker for Australia and New Zealand. New rules, including mandatory player cards, cash limits and higher spending on anti-money laundering controls, could reduce revenue and profit margins.

Operators are also expected to spend more on marketing as competition for premium customers increases, especially in Macau. Higher energy costs may put further pressure on cash flow in countries such as the Philippines and South Korea.

Large casino projects in Japan, the UAE and New York will also increase spending for major operators, including MGM, Wynn and Genting, during 2026.