The brokerage said that while operating expense growth is likely to slow to around 6 to 7 per cent in 2026<\/strong> after higher increases in 2025, this moderation is unlikely to result in meaningful margin recovery in the near to medium term. Seaport senior analyst Vitaly Umansky <\/strong>said \u201cmargins in Macau will remain pressured for some time\u201d unless there is a stronger recovery in higher-margin base mass segments or a reduction in agency business and player reinvestment levels.<\/p>\n\n\n\n The report highlighted that competition among operators remains intense, with casinos continuing to rely on reinvestment to capture or defend market share, particularly in premium segments. If premium or agent-driven business grows faster than the broader market, reinvestment levels could increase further relative to gross gaming revenue (GGR)<\/a>.<\/p>\n\n\n\n Seaport indicated that expectations for regulatory intervention to cap commissions or reinvestment have diminished.<\/p>\n\n\n\n The brokerage noted that Macau saw stronger-than-expected performance in the first quarter of 2026, with industry-wide GGR rising 14.2 per cent year-on-year. Market-wide EBITDA increased by around 9 per cent. However, margins declined by approximately 30 basis points compared with the same period last year.<\/p>\n\n\n\n Seaport warned that this momentum is unlikely to continue, with tougher year-on-year comparisons beginning in May expected to lead to a \u201cmaterial growth deceleration\u201d for the remainder of 2026. As growth moderates, operators are expected to focus more heavily on cost control, market share gains and optimising reinvestment strategies.<\/p>\n\n\n\n
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