Land-based gaming in Southeast Asia has, in recent years, been one of the brightest and most consistent emanations of strength that can be found across the global sector. Both inside and outside the gambling industry, those in the Western world will often jump to the bright lights of iGaming apps and prediction markets – but it is Macau and Southeast Asia that remain the true king of the wagering world.

Indeed, few casino resorts define the skyline of a nation quite like the imperious Marina Bay Sands – a globally recognized postage stamp of the modern Singaporean experience. Those focusing on Asian gaming specifically may point to 2019 statistics that still haven’t yet been fully recovered, ignoring the Asian retail resilience of what turned out to be one of the great survival stories in gambling history through the Covid-19 pandemic. Observing the deep-seated nuances of this complex and evolving sector, Global Gaming Insider consults expert contributors to unpick the strength and potential of land-based gaming – in a region that defines the very sector itself. 

Macau: The giant that never sleeps

Macau’s casinos generated gross gaming revenue of MOP247.4bn ($30.84bn) for 2025, marking the strongest annual performance since the pandemic disrupted the sector. In many ways, though, Macau is no longer the same market that defined Asia’s gaming landscape prior to 2020; and that transformation is now influencing how operators, regulators and investors approach the region more broadly.

There are, in fact, changes over time that may have reduced the occasional peaks to create a more stable base for sustainable growth. Finding the progression sweet spot has been Macau’s key imperative since the pandemic. Visiting Professor of Gaming Law and Anti-Money Laundering Law at the University of Macau Jorge Godinho tells Global Gaming Insider:

“Macau has only now reached the stage that people had predicted more than 20 years ago. The predominance of the mass market is finally a reality, and it sets the stage for a much more stable and less volatile industry. Macau is also increasingly turning towards non-gaming activities, as required under the new concession of contracts; there is a flurry of live concerts and sports events, for example. These two pillars – the mass market basis (not the VIP sector) and the rise of non-gaming – were the basic components of the vision underlying the historic reforms of 2001, when the monopoly ended. It took a while to get here, but it is finally happening and it’s great to see it unfolding.”

Indeed, recent Macanese growth has been clearly driven by the mass and premium-mass segments, rather than the traditional junket-led VIP model that once dominated the market. 

As noted, the 9.1% year-on-year increase in 2025 exceeded both analyst consensus and government projections, with December alone posting a 14.8% rise. However, as BBA Legal’s Bruno Ascenção, a gaming lawyer specialising in Macau, explains to Global Gaming Insider, the shift away from junkets does not mean high-value play has disappeared altogether. He says: “Since the lifting of most Covid-19 border restrictions on 8 January 2023, Macau’s recovery has been remarkably swift, but still incomplete in absolute terms. Growth has been clearly driven by the mass and premium-mass segments rather than the traditional junket-driven VIP segment. However, high rollers have not been eliminated altogether.” Instead, much of that activity has been reabsorbed into new channels.

Ascenção notes that a significant portion of former junket clientele has transitioned into premium-mass and direct-VIP programs operated in-house by concessionaires, blurring the distinction between traditional segments. “The post-junket Macau market has channeled many of them into premium-mass and direct-VIP programs, so that what appears statistically as ‘mass-driven’ growth in fact incorporates a substantial portion of re-badged VIP play.”

No need for junkets

Macau’s strength as a pillar of gaming can be seen in last year’s movie, The Ballad of a Small Player. The film, in which Colin Farrell plays the role of unreliable narrator – and high roller/problem gambler in Macau – was well received by those we’ve spoken to in the industry. In it, there is an accurate portrayal of the grandeur of Macau’s casinos.

But, amid Macau’s growth and resilience, the dismantling of the junket model, accelerated by regulatory pressure from Beijing and formalized under Macau’s 2022 Gaming Law, has fundamentally reshaped how operators manage their customer base. Functions that were once outsourced to junket promoters, including credit provision, player acquisition and relationship management, are now being internalized.

This has forced operators to develop more sophisticated direct marketing capabilities, while simultaneously strengthening compliance frameworks. Ascenção highlights that this transition has required not only operational restructuring but a shift in expertise within operator teams. He adds: “Junket-driven VIP volume has been reshaped into a mix of premium-mass and direct-VIP play, supported by more sophisticated direct marketing teams, often staffed by people who understand that former junket clientele, alongside tighter credit and AML controls in line with the new Gaming Law and a much more demanding enforcement environment.”

At the same time, the removal of the satellite casino model has further consolidated operations within concessionaire-controlled properties. The closure of Macau’s last satellite venue, Landmark Casino, on January 1 2026, marked the end of a structure that had long supported smaller, third-party-run gaming operations. “Ending the satellite casinos was a painful process, but it had to be done," states Godinho, “The number of casinos plummeted from 42 to 20 in a short period: a truly remarkable development. The pandemic helped, and all “satellites” were either closed or absorbed directly into one of the six operators.

As a result, there are six concessionaires in Macau and that is it. No more confusing and debatable grey areas or subcontracting practices, which actually had a very long history in Macau. This process improved the transparency of the regulatory system for the public and for investors.”

Diversify to survive and thrive

Macau’s new concession framework has placed diversification at the center of the industry’s long-term strategy, requiring operators to invest heavily in non-gaming assets such as entertainment, culture, sports and MICE infrastructure.

On this front, Ascenção is clear that operators have delivered – and, in some cases, exceeded expectations. What is interesting is that the case for diversification was always debatable to begin with. When you think of Macau, what does it offer? With all due respect... gambling tops the list. For any other area of tourism, there are myriad better options. And yet diversification has undoubtedly yielded positive effects. “Operators deserve significant credit for how quickly and comprehensively they have responded to the diversification agenda embedded in the new concession contracts,” he says, noting that the scale of capital-intensive projects has, at times, gone beyond what might be considered organically sustainable.

However, the broader question is whether this diversification is translating into meaningful structural change, or simply adding layers to an economy that remains heavily dependent on gaming revenue. With gaming taxes still expected to account for around 80% of government income in 2026, the challenge lies in balancing expansion with preservation of Macau’s core strength. “Macau would make a huge mistake if it were to harm its core strength in casino gaming,” Ascenção said. “This serendipitous historical legacy should be used to underwrite genuine, not cosmetic, diversification.”

He also points to inconsistencies in urban planning that undermine the Government’s stated tourism ambitions, citing underdeveloped land on Cotai as a key example. “Nothing captures the irony of Macau’s current approach better than Parcels 7 and 8 on Cotai,” he says. “In a city that claims it wants more tourism and less dependence on pure gaming, some of its best-located land for hotels and attractions is literally being used as a dump.”

The strength of Singapore 

While Macau remains the dominant gaming hub in Southeast Asia, performance elsewhere in the region, particularly in Singapore, is drawing increasing attention. But one hub that always had our attention is Marina Bay Sands (MBS). It reported adjusted property EBITDA of $2.92bn for 2025, a 42.4% year-on-year increase. But, as our data section earlier in the magazine outlines, this was more than the whole of Flutter Entertainment’s global group EBITDA for 2025. In Q4 alone, the property generated $806m, with Las Vegas Sands describing it as “the greatest quarter in the history of casino hotels.” 

Notably, that single property outperformed the combined EBITDA of the operator’s Macau portfolio over the same period. For Ascenção, the contrast highlights the advantages of a tightly controlled, high-margin model supported by diversified revenue streams. “Marina Bay Sands is a fascinating case because it shows what a tightly controlled duopoly with strong non-gaming pillars can achieve in EBITDA terms,” he tells Global Gaming Insider. He attributes MBS’s performance to a combination of operational efficiency, a high-yield international customer base and targeted product innovation, including the use of smart baccarat tables and side-bet features designed to enhance hold. “MBS does not cannibalize Macau since it segments the market. Singapore captures a very high-yield, time-constrained international clientele, while Macau remains the dominant destination for Mainland-driven mass and premium-mass play.”

Building on the subject, Godinho emphasizes that the success of Marina Bay Sands has vastly contributed to the Singaporean gaming model and, subsequently, the nation’s economy. The foothold the property has given Sands in Asia is so strong that it led the operator to pivot away from the US entirely. Godinho underlines that, when it comes to matters so significant in the long term, the finer details decide everything. “The decisive moment was winning the public tender back in 2006 and doing so by understanding exactly what the Singapore authorities wanted. For example, the project had to be totally modified; it is well-known that the iconic towers that you see there today are very different from the Las Vegas-style building that had been originally conceived. In general, it cannot be overemphasized that in a mostly closed industry, public tenders are decisive.

They are ‘big bang’ moments where any aspiring casino resort company must strive to offer the best it can in light of the tender conditions. “Then after winning the concession there are no excuses, and professional proactive management should do the job. In some jurisdictions it is of course easier than in others, as the tax environment may vary a lot. LV Sands made the right move at the right time and gave Singapore a major contribution to the intended tourism boom. Some opportunities only come once in a lifetime.”

Japan: Opportunity with constraints

Looking ahead, Japan remains one of the most closely watched potential entrants into the integrated resort market. Could it compete on the highest level with Macau and Singapore? While the country has established a legal framework for IR development, regulatory complexity and political caution are expected to shape its trajectory.

Godinho comments: “In the last decade the major advance clearly has been Japan, which built upon and developed the Macau/Singapore IR model.

The Osaka IR construction is underway and there are increasing signs that the two other locations allowed by law may be awarded and go ahead in the next few years. On the other hand, the legalization of casino gaming within integrated resorts in Thailand was not passed, but it may perhaps still go ahead one day when conditions are ripe.”

Elsewhere, Ascenção sees Japan as a complementary market rather than a direct competitor to Macau: “Japan has the potential to be a serious long-term competitor in the Asia-Pacific premium and mass-tourism space, but more as a complement than a substitute for Macau.”

The model, he argues, will prioritize tightly controlled, high-value gaming alongside broader tourism infrastructure, reflecting a regulatory approach designed to manage political risk as much as to drive revenue. “Japan’s IR projects, if delivered as planned, will pair large‑scale MICE, entertainment and tourism infrastructure with a relatively small number of tightly controlled, high‑value gaming positions, under a framework where a specialized national casino regulator sits alongside a separate national‑and‑local system for IR area approval and oversight, a deliberately complex web of safeguards that will slow the gaming ramp‑up even as it offers a strong benchmark for governance and social protection in the region.”

Standing out, standing strong

Macau’s recovery confirms that the post-junket, post-satellite model is not only viable, but potentially more resilient than many had expected. Mass and premium-mass segments are driving growth, visitor numbers are improving and operators are investing heavily under a new concession framework that ties them more closely to the city’s broader economic goals. Singapore, meanwhile, shows resounding strength – as Japan offers promise for the future. That is not to mention the likes of Vietnam, the Philippines, Australia and more... While challenges remain ahead – naturally, it isn’t all plain sailing – there is so much to celebrate within Asian land-based gaming. And celebration is something this industry needs more of.

Over the next few pages, we’ll look at the supplier and operator points of view in APAC. But, from what our expert analysts have helped us explore so far, it’s clear to see why Marina Bay Sands can generate more adjusted EBITDA than the whole of Flutter Entertainment; and it’s clear to see why players and investors alike are still drawn to Macau in their droves. Like the bricks that keep those properties standing tall, land-based gaming in Asia is going nowhere – no matter how many betting apps, slot games or new verticals enter the market.