Booming Macao Casino Stocks Set for Further Growth, Say Financial Analysts

Aerial shot of skyline — Image: Constantine S

Macao casino stocks are surging on markets in Hong Kong and the US, with several forecasters predicting further growth in the near future.

Bloomberg reported that sell-side analysts say stocks in Macao Special Administrative Region’s casino firms are “poised to continue their recent outperformance.”

Observers pointed to a range of upcoming events and hotel offerings, suggesting these would help spur a recovery in the firms’ gross gaming revenue.

Most of the operators are listed on the Hong Kong Stock Exchange (HKEX), although some also trade on US stock exchanges.

A graph showing Galaxy Entertainment Group (00027.HK) share prices on the Hong Kong Stock Exchange over the past 12 months. — Galaxy Entertainment Group (00027.HK) share prices on the Hong Kong Stock Exchange over the past 12 months. (Image: Morningstar)

Macao Casino Stocks: On the Rise

The report noted that the Bloomberg Intelligence Index of Macao gaming shares has risen 59% since its low point in April.

This outpaces the 31% growth rates of the Hang Seng Composite Index, the HKEX’s stock market index.

The outlet noted that monthly gaming revenue for Macau casinos has now outperformed analyst expectations for three consecutive months.

The Bloomberg casino gauge rose over 4% on July 28 to reach its highest level since early October last year.

Melco Resorts & Entertainment‘s share price has risen 95% since the spring of this year. Melco, which is listed on the NASDAQ exchange, operates the Altira, The City of Dreams, and Studio City casinos in Macao.

MGM China Holdings, meanwhile, has seen a 72% rise in its prices on the HKEX.

A graph showing MGM China Holdings (2282.HK) share prices on the Hong Kong Stock Exchange over the past 12 months. — MGM China Holdings (2282.HK) share prices over the past 12 months. (Image: Google Finance)

Pop Concerts Provide Revenue Boost

Earlier this month, Dow Jones reported that the Macao regulator, the Gaming Inspection and Coordination Bureau, stated that gross gaming revenue increased 19% to $2.60 billion in June.

Citi analysts expect to see a 6% growth in gross gaming revenue in Macao during the second half of 2025.

Financial experts said that recent concert performances by the veteran Hong Kong pop star Jacky Cheung and the K-pop A-lister G-Dragon had helped raise footfall.

They also pointed to recent changes to visa rules and new rail links, suggesting these could help further improve revenues.

In June, Morningstar analyst Jennifer Song said a “supportive visa regime, enhanced travel infrastructure, and the expansion of non-gaming offerings” would result in “robust gaming revenue” this year.

The City of Dreams in Macao. (Image: WiNG [CC BY-SA 3.0])

Higher Operating Costs Incoming?

Jefferies Financial Group analyst Anne Ling said that more revenue rises were likely in July’s figures. She explained: “The update from our sources and checks appears to substantiate the strong momentum in the stocks, which could continue.”

At the start of the year, S&P Global said it expected Macao’s gross gaming revenue to rise by between 5% and 6% in 2025.

But it warned that attempts to attract more premium mass players could impair Macao casino operators’ cash flow and leverage by driving up operating costs.

Last year, the Macao Judiciary Police arrested several individuals suspected of operating a fake casino chip scam at the Galaxy Macao Casino in 2023.