S&P: Macau and Singapore are Asia-Pacific’s safest gaming bets for investors

[Photo: Renato Marques]

Macau and Singapore are the best-placed gaming jurisdictions in Asia-Pacific for investors, according to S&P Global Ratings.

S&P also said regional gaming revenue is likely to grow by 3% to 5% a year over the next few years, but warned that “strong demand alone will not strengthen credit quality.”

In a recent report, S&P said gaming companies’ credit quality is now driven less by demand and more by the regulatory and political environment in which they operate. “In our view, regulatory risk is structural and intrinsic to the Asia-Pacific gaming sector,” S&P said.

“In many Asian jurisdictions, political incentives to prioritize social safeguards frequently override economic stability, leading to abrupt policy shifts,” it added.

The ratings agency placed Macau and Singapore in its “established hubs” category, citing mature regulation, high barriers to entry, and tourism infrastructure. Macau was ranked first in the region for business resilience, scoring highly for market size, resilience to online gambling, regulatory oversight, and license length, while Singapore came second.

S&P also noted that competition among the six concessionaires in Macau is intense “following the collapse of the VIP junket model from late 2021 and concession renewals in 2022,” but cited the low risk of disruption from online gambling as a factor that continues to support earnings.

Singapore, meanwhile, was highlighted as benefiting from a duopoly and strong market discipline, even with a higher tax rate for operators.

In other regions, Australia, New Zealand, and the Philippines were grouped as “headwind markets,” where tighter regulation and softer consumer spending are weighing on earnings. On online gambling, S&P noted that the Philippines and New Zealand have adopted more permissive stances, which could reduce returns and make large-scale physical casino investments less attractive.

Malaysia and Cambodia were classified as mid-tier markets. S&P said both markets are less appealing to international visitors, who tend to prefer the perceived security and transparency of Macau or Singapore, even though policy settings, such as the Visit Malaysia campaign, remain broadly supportive.

The report also pointed to cultural attitudes toward gambling. Citing a 2025 Pew Research Center survey, S&P said roughly 70% of adults in Indonesia, India, and South Korea view gambling as immoral, compared with about 30% of adults who hold similar views in the US and Australia.

As potential markets, S&P recognized long-term prospects in Thailand and Japan but said political uncertainty and lengthy development timelines mean they are unlikely to contribute meaningfully to cash flow before the next decade.

Japan’s first casino resort, MGM Osaka, is due to open at the end of 2030.