Macau market remains ‘very competitive’, says Seaport after meetings with managements of MGM, Wynn

Brokerage Seaport Research Partners says the casino market in Macau “remains very competitive”, but there is a “revenue recovery evident” compared to the betting volume slowdown seen during the recent FIFA World Cup 2026, which took place between June and July. The comments by Seaport senior analyst Vitaly Umansky came after separate meetings with company management teams at MGM Resorts International and Wynn Resorts Ltd. These were held during the first day of the Seaport Annual Summer Conference, taking place this week. MGM Resorts is the U.S.-based parent of MGM China Holdings Ltd, operator of the MGM Macau and MGM Cotai casino properties in Macau. U.S.-based Wynn Resorts controls Wynn Macau Ltd, which runs the Wynn Macau and Wynn Cotai complexes. The Macau gross gaming revenue (GGR) declines in June and July were “largely driven by the World Cup,” Mr Umansky wrote, admitting that such impact “was more negative than expected”. The international football tournament – held in North America from June 11 to July 19 – was said to have diverted some consumer attention away from Macau gambling services, according to a number of industry analysts. “While there is a recovery evident, the market remains very competitive,” Mr Umansky observed. Casino GGR in Macau fell 12.1 percent year-on-year in June, followed by a decline of 8.4 percent in July, according to data released by the city’s Gaming Inspection and Coordination Bureau. Discussing the performance of MGM China, the senior analyst noted that the firm’s Macau portfolio and focus on premium mass “work best in the current Macau market where strength is in the high-end” segments. He added: “MGM is focused on EBITDA [earnings before interest, taxation, depreciation, and amortisation] growth and will remain rational on costs and reinvestment.” MGM China reported broadly flat revenue for the second quarter of 2026, though profitability declined as higher intercompany branding licence fees and softer operating performance weighed on results. The company generated net revenue of US$1.10 billion for the three months to June 30, compared with US$1.11 billion in the prior-year period. Looking at Wynn Macau Ltd’s market positioning, Mr Umansky considered it “remains a competitive advantage, but player reinvestment in the industry has been a driver of share shifts.” He added: “[It is] not clear how player reinvestment levels soften in such a competitive market.” The analyst forecast that Wynn Macau Ltd’s operational expenses growth was “expected to slow year-on-year in the second half of the year and into 2027, which should support margins.” Second-quarter operating income at Wynn Macau Ltd rose 26.9 percent year-on-year, to just over US$162.8 million. Its adjusted EBITDA before rent expenses (EBITDAR) for the three months to June 30 rose 17.1 percent year-on-year, to just under US$297.0 million.