Galaxy eyes growth with expansion and entertainment push

Galaxy Entertainment Group (GEG) is optimistic about the future of Macau’s gaming and entertainment sector. In an interview with Bloomberg’s Haslinda Amin last week, GEG Chief Operating Officer (COO) Kevin Kelley detailed the company’s strategic focus on non-gaming entertainment, its expansion plans, and the evolving market dynamics in Macau and beyond.

Following the release of GEG’s first-half earnings, Kelley pointed to a resurgence in consumer confidence across China and the wider region as a key factor driving growth. “We’re starting to see some enhanced consumer confidence across China and the region,” he said, adding that “people want to get out and stretch their legs and enjoy these experiences.”

While Kelley stopped short of making precise forecasts, he expressed confidence in the trend’s continuity, noting that “as long as the headwinds stay light, if the trade war and other macroeconomic conditions are stable, then we’re pretty confident that this trend is going to continue.”

Central to the gaming operator’s appeal is its substantial investment in large-scale entertainment infrastructure and programming.

Kelley highlighted the success of the 16,000-seat Galaxy Arena, drawing a wide range of top global acts – from Western artists to K-pop, Cantopop, and world-class sports events including UFC and table tennis tournaments – as part of GEG’s “multi-pronged” strategy to boost both gaming and non-gaming revenues.

The company opened the Galaxy Arena as part of its Phase 3 expansion, completed alongside a 650-seat auditorium, 40,000 square meters of MICE (Meetings, Incentives, Conferences, and Exhibitions) space, and the luxury 700-room Andaz Macau and Raffles. Kelley emphasized how the arena enables the group to “lead the market in… large-scale event programming,” hosting approximately 190 events last year alone.

Discussing the impact of concerts on revenue, the COO acknowledged variability depending on the performer and their fan base. “It varies from show to show,” he said, noting that some events, such as K-pop performances, tend to generate less economic impact compared to concerts by artists like Jacky Cheung, whose audience may be more mature and affluent.

Despite these differences, Kelley emphasized that concerts consistently provide a boost to various aspects of the business, including food and beverage as well as gaming. “Depending on each type of show, we always see some sort of lift in our business,” he remarked.

Building on this foundation, GEG recently introduced the Capella, its new “high-end super-luxury” hotel, which Kelley believes will further diversify revenue streams beyond gaming in the coming quarters.

Internationally, Kelley acknowledged the need for patience and caution in GEG’s bid to enter the emerging Thailand gaming market. Despite initial enthusiasm, progress has been slow due to political challenges and regulatory uncertainty, leading to the withdrawal of the casino bill from the Thai parliament in July.

“We felt very strongly that our experience as the best integrated luxury resort developer in the world… would be a big complement to the opportunity in Thailand,” Kelley said.

However, he indicated no immediate timeline, saying the company is closely monitoring the situation and will carefully consider all variables before committing.

On Japan, where MGM Resorts International is opening the country’s first integrated resort, Kelley echoed a similar stance of watchful interest in the potential for such projects.

“We always thought Japan was a very attractive market as well, and we’re just going to have to wait and see how it all shakes out with the government,” he said. “We’ll keep a close watch on it, but clearly we have interest if the right type of investment opportunity arises.”

Construction on MGM Osaka began on April 24, 2025, with the resort slated to open in autumn 2030.

“As long as we see a stable environment, we’re pretty confident that growth will continue in a good measure,” Kelley concluded.

Galaxy is currently advancing its Phase 4 development, expected to be completed by 2027, which Kelley described as “rounding out a lot of our major development efforts.”