May 30, 2025, 03:57h
Macau's CEO Expresses Short-Term Obstacles, Remains Optimistic for Future Growth
Last updated on: May 30, 2025, 03:57h.
Todd Shriber @etfgodfatherRead MoreFinancialGaming BusinessMergers and Acquisitions Robert Goldstein talks Macau's Gaming Revenue Hiccups* Economic factors, online gaming, and junket market woes aren't helping* Long-term optimism still intact for Macau*
Las Vegas Sands (NYSE: LVS) CEO Robert Goldstein addressed the temporary roadblocks in gross gaming revenue (GGR) in Macau, the company's primary market, during his talk at Bernstein's 41st Annual Strategic Decisions Conference on May 30th.
Goldstein acknowledged visitors' spending behaviors have stabilized around $28 billion annually despite an uptick in pre-pandemic-level visitation to the casino hub. He attributed this shift to evolving consumer sentiment and various macroeconomic factors such as global economic issues, tariffs, and the ongoing US/China trade spat.
Macau's Gambling Landscape: From Online Wagering to Junket Crackdown
In addition to these external pressures, Goldstein pointed out the proliferation of online gambling in Asia and the scaling down of Macau's junket industry as potential challenges hampering GGR growth in the region.
"We can't pinpoint exactly how much online gambling is impacting Macau, but it's clear that the online gambling scene is growing, and this could be affecting our revenue," said Goldstein during the conference. "The decline in the junket segment hasn't helped matters either."
Prior to the pandemic, Macau's junket market was bustling, offering VIP players lavish perks like first-class flights and top-tier hotel stays. However, Chinese authorities imposed stringent limits on junket permits amid anti-money laundering controversies, leading to a significant reduction in the number of such licenses.
In 2021, the renowned Suncity Group boss, Alvin Chau, was sentenced to 18 years in prison following charges of fraud, illegal gambling, and criminal association. Recent developments saw the Macau Gaming Inspection and Coordination Bureau (DICJ) cap the number of junket licenses at 50—a sharp decrease from the 235 licenses held in 2013.
Bullish on Macau's Future
Despite the existing hurdles, Goldstein maintains a positive outlook for Macau's long-term potential, projecting GGR to bounce back between $32 billion and $34 billion and possibly exceed $35 billion over time.
Sands has invested heavily in Macau, operating five integrated resorts aimed at boosting earnings before interest, taxes, depreciation, and amortization (EBITDA). Goldstein believes that these commitments could yield substantial returns in the future, especially if tensions between the US and China ease.
"The world economy is a mess right now, and there's uncertainty about the relationship between China and the US, tariffs, and China's overall trajectory," Goldstein concluded. "But things will ultimately sort themselves out, and Macau will continue to thrive."
- In the midst of global economic issues, tariffs, and the ongoing US/China trade spat, financial experts are monitoring the impact on Asia Pacific gaming business, particularly in Macau.
- The financial landscape of Asia Pacific gaming is undergoing changes as investors assess the growth potential of the sector amid challenges such as the proliferation of online gambling and the downscaling of Macau's junket industry.
- Despite the current hurdles in Macau's gambling market, financial analysts remain optimistic about the long-term potential of the region, forecasting a recovering gross gaming revenue between $32 billion and $34 billion, with possibilities of exceeding $35 billion over time.
