Melco Resorts & Entertainment: Riding the Highs in Macau’s Gaming Boom
In a remarkable turn of events, Melco Resorts & Entertainment Ltd, a Hong Kong-based casino giant, finds itself at the heart of a burgeoning gaming boom in Macau. The company, known for its expansive casino, restaurant, bar, and resort facilities across Asia, is witnessing a significant uptick in its fortunes, thanks to a series of strategic moves and favorable market conditions.
Macau’s Gaming Revenue Soars
The catalyst for Melco’s recent surge can be traced back to Macau’s gaming revenue, which soared past estimates in June 2025. According to Bloomberg, the region’s monthly gaming revenue rose by an impressive 19% year-on-year, reaching 21.1 billion patacas ($2.6 billion). This performance not only exceeded the median analyst estimate of a 9.4% increase but also marked a return to 88% of the pre-pandemic levels seen in 2019. The driving force behind this surge? A fervor for Cantonese pop concerts, particularly those headlined by Cantopop icon Jacky Cheung. His performances in Macau significantly boosted the number of premium players and the average wager per big bettor, underscoring the potent mix of entertainment and gaming that Macau offers.
Morgan Stanley’s Optimistic Outlook
Adding to the positive sentiment, Morgan Stanley’s research report highlighted Macau’s gaming revenue for June, which increased by 19% YoY to MOP21.1 billion, surpassing expectations. The brokerage firm projected a further increase in July’s gaming revenue to MOP20.4 billion, up 10% YoY, with an optimistic outlook for 2025’s total gaming revenue to reach MOP238 billion, up 5% YoY. This bullish forecast not only reflects the resilience of Macau’s gaming sector but also positions companies like Melco Resorts & Entertainment for potential growth.
Strategic Moves and Market Position
Amidst this favorable backdrop, Melco Resorts & Entertainment is not just a bystander. The company’s strategic positioning and its flagship projects, such as the nearly completed City of Dreams Sri Lanka Casino, signal its ambition to capitalize on the gaming boom. With a close price of $7.23 as of June 29, 2025, and a 52-week range between $4.55 and $8.9, Melco’s stock performance mirrors the broader trends in the gaming and leisure sector.
A Critical Perspective
While the current trajectory for Melco Resorts & Entertainment and the Macau gaming sector appears promising, it’s crucial to maintain a critical perspective. The reliance on entertainment events like concerts to drive gaming revenue underscores the volatile nature of this growth. Moreover, the competitive landscape, with companies like MGM CHINA and GALAXY ENT also poised for strong EBITDA growth, suggests that Melco will need to continue innovating and expanding its offerings to maintain its edge.
In conclusion, Melco Resorts & Entertainment Ltd stands at a pivotal moment, with the potential to significantly benefit from Macau’s gaming resurgence. However, the company’s ability to navigate the challenges of a competitive and ever-evolving market will be key to sustaining its growth and capitalizing on the opportunities that lie ahead.