Galaxy Entertainment Group is reportedly pushing for an expanded number of gaming tables at its under-construction Galaxy Macau Phase 4, a move that could reshape the competitive landscape in Macau’s casino industry. According to a memo from Jefferies, the brokerage firm noted that Galaxy Entertainment is engaging with the Macau government to secure a fresh allocation of gaming tables for its new resort, which is expected to open in 2027.

Strategic Focus on Premium Gaming

During a post-results press conference, Galaxy Entertainment management emphasized that Phase 4 is designed to cater to high-end customers. The project, spanning 600,000 square metres, will feature a 5,000-seat theatre, a ‘water resort deck,’ and other luxury amenities alongside casino space. Jefferies analysts Anne Ling and Jingjue Pei observed that Galaxy Entertainment is ‘lobbying the government to increase the number of gaming tables,’ citing the company’s investment in Phase 4.

The current gaming concession allows Galaxy Entertainment to operate up to 1,000 gaming tables and 1,700 gaming machines, according to a corporate announcement from January 1, 2023. However, the company’s financial filing for the latest reporting year did not disclose how many tables are currently in use across its Macau properties.

Reallocating Tables for Higher Yields

If the government does not approve additional tables, Galaxy Entertainment may reallocate existing ones to higher-yield areas, a strategy similar to one used at Horizon Plus, a premium gaming zone within the Capella at Galaxy Macau hotel tower. The Jefferies analysts noted that this approach would align with the company’s focus on maximizing revenue from high-value customers.

Galaxy Entertainment has also reduced the number of hotel rooms in Phase 4 from 1,500 to approximately 1,350 to accommodate larger, more luxurious accommodations. This decision was influenced by customer feedback indicating a demand for premium products, according to the analysts.

Capital Expenditure and EBITDA Growth

The company’s capital expenditure for 2026 is expected to range between HKD10 billion (US$1.28 billion) and HKD11 billion, according to Jefferies. This follows HKD3.5 billion spent in 2025 and will be used to enhance competitiveness, update resorts, and fund the development of Phase 4. The firm aims to maintain its position in the premium mass market segment, which remains highly competitive in Macau.

Analysts from JP Morgan highlighted that Galaxy Entertainment views its share of EBITDA (earnings before interest, taxes, depreciation, and amortization) as a key performance metric. They estimate that the company’s adjusted EBITDA share in the Macau market rose from 22 percent in 2024 to 24 percent in 2025 and is expected to remain at that level through 2026. This would keep Galaxy Entertainment second only to Sands China Ltd.

JP Morgan analysts also noted that Galaxy Entertainment has demonstrated discipline in managing operating expenses, leading to ‘strong margin expansion.’ The firm’s chairman, Francis Lui Yiu Tung, personally participated in the earnings call, signaling a strong commitment to transparency and alignment between major and minority shareholders. Unlike some of its peers, the company does not have an intermediate holding company, which could simplify shareholder relations.

Regarding shareholder returns, JP Morgan analysts stated that the door remains open for further dividend increases. The payout ratio was approximately 65 percent in the second half of 2025, compared to 58 percent in the first half of the same year, 50 percent in 2024, and 32 percent in 2023. However, specific commitments on future dividends were limited during the earnings call.

Galaxy Entertainment’s strategic initiatives, including the development of Phase 4 and its focus on premium gaming, are expected to drive long-term growth. With the casino industry in Macau facing continued competition, the company’s ability to differentiate through quality, service, and innovation will be crucial in maintaining its market position.