Francis Lui Yiu Tung (pictured), chairman of Macau casino operator Galaxy Entertainment Group Ltd, says the company is sending a team to Thailand to study the potential of that market as a casino jurisdiction.
“We are conducting studies at the moment” regarding the Thai market, he said. “In the meantime, we still feel very bullish” about the potential of a Thai casino industry, Mr Lui added.
The Galaxy Entertainment chairman stated that, in addition to already having established an office in the Thai capital, Bangkok, as previously announced, the firm was “assembling a small team of people to go to Bangkok, just to look around the whole of Thailand… and see what are the best places for us to be located at”.
Mr Lui’s comments were made during a press conference in Hong Kong on Thursday to discuss Galaxy Entertainment’s annual results. Full-year 2024 net profit rose 28.3 percent year-on-year to nearly HKD8.76 billion (US$1.13 billion), compared to just under HKD6.83 billion in 2023.
Thailand’s cabinet approved, in principle, the Entertainment Complex Bill for casino liberalisation on January 13. The draft legislation is expected to be sent to the lower house of the National Assembly in early March for discussion and approval, according to media reports.
The bill is currently subject to scrutiny via a public hearing process, with a deadline of March 1 having been mentioned. The content of the latest draft would be part of the public review process.
As GGRAsia reported last week, a licensing entity linked to Galaxy Entertainment has applied to the Macau government for several trademarks containing the words “Bangkok” or “Thailand”.
In his comments on Thursday regarding Thailand, Mr Lui praised the country’s attractiveness as a destination, citing its “friendliness, beautiful waters, great cuisine, great service”. He said it would “be a great place” for a casino resort industry “to be very effective”.
He also confirmed that he had visited the country “a few times” last year. “I could actually see that the economy needs a new impetus,” stated Mr Lui, adding that the current government believed its proposed “integrated resort strategy” would help “drive up the economy.”
“Hopefully, the law will be passed soon – we expect it will be within this year – and then we can get to work,” he added.
Mr Lui noted that Galaxy Entertainment currently had significant capital available, which would allow the company to act quickly on any expansion opportunity.
“I think with this big ‘war chest’, which very few other integrated resort [operators] have… it will give us a better position to be competitive” regarding a potential bid for a resort in Thailand.
In its 2024 annual results, Galaxy Entertainment said that as of December 31, it had a cash and liquid investments of HKD31.3 billion, with “minimal debt” of HKD4.2 billion, giving it a net position of HKD27.1 billion.
Confidence in Macau
During the press conference, Mr Lui emphasised his confidence in the growth prospects for Macau’s gaming market, stating that he believed the market could meet the full-year MOP240 billion (US$30.0 billion) gross gaming revenue (GGR) target set by the Macau government.
Macau’s GGR for calendar year 2024 stood at MOP226.78 billion.
Mr Lui acknowledged investor concerns regarding Macau’s outlook and admitted that business levels during the Chinese New Year period had not been “as good as the top end of our expectations.” However, he noted that performance in the “tail end” of the holiday period was “much better than we expected.”
Taking into consideration the first two months of 2025, Mr Lui said he remained “very happy with the performance”. He added: “In general, we are very satisfied.”
Mr Lui also reiterated the company’s plans to launch the new Capella-branded hotel at the Galaxy Macau casino resort in “mid-2025”, and complete the complex’s Phase 4 “by mid-2027.”
Also speaking at Thursday’s briefing, Galaxy Entertainment’s chief financial officer, Ted Chan Ying Tat, confirmed that all baccarat gaming tables at the company’s properties were now equipped with ‘smart’ technology to better understand player behaviour. However, Mr Chan noted that Galaxy Entertainment “needed more time” to collect “more data” to fully leverage the potential of the technology.
Discussing the potential impact of the opening of the MGM Osaka complex – Japan’s first casino resort – on Galaxy Entertainment’s business, Mr Chan stated that the property was only scheduled to open in 2030.
“I’m sure a lot of customers really like Japan,” he said. “But the profile should be quite different because Macau remains the only city in Greater China where gaming is allowed.”
Mr Chan added: “We continue to add more elements. It’s not just one casino; all the gaming operators [in Macau] are making efforts to diversify their products and facilities. We believe Macau’s appeal will continue to improve.”
Future of Waldo undecided
Galaxy Entertainment operates its flagship Galaxy Macau resort in the city’s Cotai district and StarWorld Hotel in downtown Macau, as well as providing a licence for the Waldo satellite casino business.
Under a new gaming regulatory framework – coinciding with the current 10-year concessions of the six Macau operators – third-party investors in satellite casinos will only be permitted to earn a “management fee” via a ‘management company’ from 2026. However, industry insiders have commented that details are still lacking regarding the new operating model for satellite casinos.
During Thursday’s press conference, Mr Lui said the future of Waldo remained undecided. “We are still talking to our partner,” he stated. “We probably also need to hear the government’s decision first.”
He added that the firm was consulting with its “more than 100” workers posted at Waldo about their preferences for the future.
