Sri Lanka is making a bold play to revive its flailing economy by transforming tourism into a cornerstone sector. Last year, tourism represented just 4% of GDP, but the government is now aiming to elevate that to a striking 10%. A new $1.2 billion integrated resort—City of Dreams Sri Lanka, a joint venture in Colombo between John Keells Holdings and Melco Resorts—is central to this strategy. The project is expected to pull in affluent tourists, particularly from India and China, with a target of 3 million arrivals in 2025, up from 2 million in the prior year.
Australia’s Star Entertainment Group is facing mounting financial pressure as its lenders—under the Senior Facility Agreement (SFA)—have rejected the terms it proposed for covenant waivers on its AU$430 million (US$279 million) loan. These waivers would cover its obligations for the quarters ending September 30 and December 31, 2025, but the board has deemed the lenders’ conditions “unacceptable” to the company’s interests.
Macau Legend Development Ltd has warned of a sharp downturn in performance for the first half of 2025, forecasting a net loss of approximately HKD 1.42 billion (US$182 million). This represents a dramatic increase compared to the HKD 109.9 million loss recorded in the same period last year. The setback highlights how regulatory shifts and operational challenges are reshaping the satellite casino landscape in Macau.
On August 27, 2025, Morgan Stanley Asia Ltd announced a substantial 25% downgrade to Bloomberry’s 2025 adjusted EBITDA forecast, reducing expectations from PHP 17.83 billion to around PHP 13.38 billion (approximately US$235.1 million). This sharp revision underscores the mounting challenges faced by the Philippine casino operator amid a sluggish recovery in VIP and premium mass-gaming markets.
Macau’s gaming sector is drawing heightened investor interest, thanks to fresh signals from major operators returning capital to shareholders. According to investment bank Morgan Stanley, interim dividends from leading players—Wynn Macau, MGM China, and Galaxy Entertainment Group—exceeding a 50% payout ratio, combined with robust gross gaming revenue (GGR) forecasts, set the stage for a potential re-rating of regional stocks.
Author: Janice Chew • Thursday, 28/08/2025
