Robert Goldstein, Las Vegas Sands CEO, has highlighted several macroeconomic challenges impacting Macau’s GGR, despite his confidence in the region’s long-term prospects.
Speaking at Bernstein’s 41st Annual Strategic Decisions Conference, Goldstein noted that while visitation to Macau’s casinos has returned to pre-pandemic levels, GGR remains stagnant at approximately $28bn annually.
Goldstein attributes this stagnation to changing consumer spending habits and broader global economic issues, including the ongoing US-China trade tensions. He admitted to a prior belief that Macau’s GGR would continue climbing beyond $30bn, a notion now tempered by current realities.
“Consumer sentiment and global issues, including tariffs, are impacting visitor spending,” he stated.
The Sands CEO also points to the rise in illicit online gambling across Asia and the substantial reduction of Macau’s junket industry as contributing factors.
“The decline of the junket sector and the competition have not helped,” he remarked, noting the impact of AML measures and the arrest of former Suncity Group CEO, Alvin Chau.
Despite these hurdles, Goldstein remains optimistic about Macau’s future, projecting that GGR could eventually reach $32bn to $34bn, possibly even surpassing $35bn.
Las Vegas Sands has invested heavily in its five integrated resorts within the region, positioning itself for potential future growth.
Goldstein concluded: “The world is currently navigating complex US-China relations and economic uncertainties,” emphasising the need for adaptability in a challenging market environment.
