MGM China Leads Macau Casino Recovery as Tourist Return Drives Strong Rebound

📈 MGM China: Market Share Expansion & Profitability Gains

MGM China has shown exceptional performance post-pandemic, with its market share surging from 9.5% in 2019 to 15.2% in 2023. The company’s flagship properties—MGM COTAI and MGM MACAU—contributed 8.6% and 6.6% of that share, respectively.

Most notably, MGM reported an adjusted EBITDA margin of 29.3%, an increase of 210 basis points compared to 2019. This growth reflects strong cost controls, better operating efficiencies, and a pivot towards higher-margin clientele. Its share price surged 114% over six months on the Hong Kong Stock Exchange, signaling strong investor sentiment and optimism for continued growth.

🚀 Melco Resorts: Revenue Growth, Narrowing Losses

Melco Resorts has also staged a strong comeback. In 2023, the company reported HK$29.53 billion in net revenue, a 179.5% year-on-year increase, driven by a rebound in mass-market tourism and the successful launch of Studio City Phase II and City of Dreams Mediterranean.

Although Melco still posted a net loss of HK$3.49 billion for the year, the figure marked a substantial improvement compared to HK$9.99 billion in 2022. The company’s Nasdaq-listed shares rose 144%, while its Hong Kong parent, Melco International, gained 81%, indicating growing confidence in its recovery trajectory.

🔄 Industry Trend: Shift from VIP to Premium Mass Market

Macau’s casino industry is undergoing a structural shift. The decline of the VIP junket segment—once the backbone of Macau gaming—has given way to a focus on premium mass-market clientele.

Operators like MGM China and Wynn Macau, which have invested heavily in high-end amenities and customer experience, are benefiting from this shift. In contrast, mass-reliant operators such as Sands China and Galaxy Entertainment have experienced slower momentum, facing stiffer competition and higher operating pressures.

🌍 Strategic Outlook: Diversification & Sustainable Growth

Looking forward, the future of Macau’s gaming sector lies in sustainable, diversified development. The Macau SAR government has urged operators to invest in non-gaming elements—such as entertainment, conventions, and cultural tourism—to reduce reliance on gambling revenues and align with long-term economic goals.

MGM China and Melco have responded actively by expanding hotel, dining, and retail offerings, alongside new digital initiatives to attract international tourists. These efforts are not only vital for compliance with concession requirements but also crucial for tapping into a broader customer base beyond mainland Chinese VIPs.

🧠 Investor Implications

• MGM China: Market leader in rebound metrics. Strong EBITDA margin and asset utilization.
• Melco: Positioned for long-term growth with new property launches.
• Sector Trend: Focus on premium mass, non-gaming expansion, and international diversification.

For investors eyeing Macau’s gaming rebound, MGM and Melco represent the most agile and adaptive players in a post-COVID environment.