In the second quarter, Macau's three main gaming operators—Las Vegas Sands, MGM China, and Wynn Resorts—experienced a temporary decline in visitation and gaming activity, influenced by the FIFA World Cup.
The global focus on football impacted rolling volumes and mass-market play. However, during their earnings calls in July and August, the operators noted a rebound in activity starting in July, with momentum strengthening through August.
A key finding from this period is that ongoing investment in luxury accommodations, premium gaming, hospitality, and entertainment is becoming a vital growth driver. This strategy aims to attract new customers, extend their time spent in the region, increase VIP rolling volumes, and enhance player retention.
Projects currently underway demonstrate confidence in Macau’s long-term outlook and aim to upgrade the region’s high-value customer demographic.
Contrasting with Macau's mixed results, Singapore displayed considerable resilience in the same quarter. Marina Bay Sands reported strong earnings despite a decline in regional visitation.
Las Vegas Sands views Singapore as a key market, with Marina Bay Sands achieving EBITDA of $689 million, surpassing expectations by $37 million. Mass gaming revenue increased by 5% year-on-year compared to the second quarter of 2025, despite challenges posed by the World Cup. This growth highlights the operation's resilience and its ability to maintain earnings amid weaker tourism.
Patrick Dumont, chairman and CEO, commented on the earnings call, saying, "This quarter's results reinforce our view that Marina Bay Sands' structural earnings power has been elevated following our significant product investments, suite renovations, and service enhancements." He noted the company’s commitment to investing in its premium hospitality and entertainment facets while optimizing its reinvestment strategy.
Macau’s performance, while below expectations, reported EBITDA of $430 million—$87 million shy of what could have been achieved. The total gaming revenue reached $1.79 billion, a slight decline of 0.4% from the previous year. This was primarily due to a low VIP rolling hold of 1.35%. Nevertheless, there were positive underlying trends, including a 73% increase in rolling table volumes, a 15% rise in non-rolling table volumes, a 30% increase in slot handle, and an 8% growth in mass GGR. Dumont expressed optimism about gaming volumes across all sectors, highlighting significant year-over-year growth.
MGM China reported historical net revenue of HK$17.4 billion ($2.21 billion) and adjusted EBITDA of HK$4.8 billion ($612 million) for the quarter. April and May saw strong gaming volumes, but June reflected a dip associated with the World Cup, which is viewed as a temporary setback as recovery was evident in July.
Improved operational trends in July indicated that normalized GGR and property visitation exceeded first-quarter levels. Management anticipates an uptick in visitation due to upcoming concerts and events during the summer. They believe their premium-property investments are yielding strong results. MGM recently enhanced its Cotai property with a 40,000-square-foot premium gaming area and newly renovated suites, expecting further upgrades.
In addition to its Macau prospects, MGM is focused on long-term growth in Japan with the MGM Osaka project slated to open in autumn 2030. Bill Hornbuckle, president and CEO, expressed strong optimism regarding the company’s future in Asia during the Q2 earnings call, stating, "MGM Osaka forges ahead with its 2030 opening, which has me pleased to say our future has never looked brighter."
This positive sentiment aligns with analysis from Deutsche Bank, where analyst Steve Pizzella highlighted MGM's attractive long-term investment portfolio, bolstered by solid Macau operations and Japan’s growth potential.
Wynn Resorts’ financial performance in Q2 was largely attributed to Macau, with Wynn Palace reporting a 21% revenue increase year-on-year, reaching $653.4 million, while Las Vegas operations remained flat. Wynn's Macau revenue showcased solid growth with $306 million in VIP adjusted EBITDA, despite challenges from a lower VIP hold. Overall volumes rose, and mass-market drop increased by 5%.
Wynn’s CFO, Craig Fullalove, explained that the decline in rolling chip volumes compared to the rise in mass-market drop reflects distinct customer segments driven by different reinvestment strategies. Although the VIP segment faced some challenges, Fullalove noted recovery trends in the mass side, which is encouraging for the company.
Looking forward to the third quarter, Wynn noted slight declines in year-on-year rolling chip volumes and mass drop attributed to World Cup impacts and standard seasonal trends. Recovery signals appeared in mid to late July and continued into August.
Additionally, Wynn revealed plans for its Al Marjan Island project in the UAE, now expected to open in 2027 after delays due to regional conflicts. The development budget has increased by approximately $600 million due to higher costs related to its construction and disruptions.
