Melco Resorts Q3 Revenue Falls 10%, Macau Casino Demand Weakens

Melco Resorts & Entertainment reported a 10.4% decline in Q3 2026 revenue to $1.17 billion as weaker casino spending in Macau affected both VIP gambling and mass-market gaming. Adjusted Property EBITDA fell 24.4% to $287.6 million.

Good to know

• Melco Resorts reported just $34,000 in quarterly net income, down from $74.7 million a year earlier.
• City of Dreams Macau recorded a 44% decline in VIP gaming revenue, while Studio City gaming revenue fell 7%.
• Cyprus delivered stronger results, with City of Dreams Mediterranean gaming revenue increasing 13% to $88 million.

Melco Cuts Spending as Macau Casino Market Slows

Melco Resorts is keeping a closer eye on casino promotions rather than spending more to attract players in a weaker Macau gambling market.

President Evan Winkler said the operator would avoid increasing player incentives simply to protect market share.

“As you go into a period of lower demand, you’re not trying to chase unhealthy levels of reinvestment to get the business that’s there,” Winkler said.

Meanwhile, daily operating expenses across Macau properties declined to approximately $3.2 million, below previous expectations.

The company also reduced its future investment plans. Melco expects capital spending of approximately $375 million for 2026, followed by $275 million in 2027.

Cyprus Casino Growth Contrasts With Macau and Manila

Outside Macau, City of Dreams Mediterranean delivered better results, generating $88 million in gross gaming revenue, up 13% year-over-year.

Mass-market gaming revenue climbed 21% to $50 million, while slot revenue increased 5% to $38 million. Adjusted EBITDA reached $26 million, an 11% improvement.

However, City of Dreams Manila recorded a 9% decline in gaming revenue to $114 million. VIP and mass-market gaming each fell 13%, while adjusted EBITDA dropped 20% to $33 million.

CEO Lawrence Ho said City of Dreams Mediterranean and its satellite casinos achieved record quarterly EBITDA despite difficult regional conditions.

City of Dreams Macau Hit Hardest by VIP Decline

City of Dreams Macau generated $633 million in gross gaming revenue during Q3, down 14% from a year earlier.

VIP revenue suffered the largest decline, falling 44% to $116 million. Mass-market gaming revenue dropped 8% to $481 million, while slot revenue decreased 12% to $37 million.

Adjusted EBITDA declined 37% to $130 million.

Studio City also experienced weaker casino activity, with gaming revenue falling 7% to $321 million and adjusted EBITDA declining 13% to $91 million.

The slowdown extended beyond high-stakes customers.

“We are seeing some general softness,” Winkler said.

Ho linked weaker demand partly to reduced consumer spending in mainland China, the FIFA World Cup and tax issues involving overseas investments.

“The market is challenging right now,” Ho said. “The main thing is really the consumption part of the Chinese economy tends to be a bit weak.”

Macau government figures also showed casino GGR declining 10% year-over-year to MOP21.68 billion in October, the fifth consecutive month of annual declines.

However, October revenue increased approximately 20% from September, providing a more balanced view of recent Macau casino performance.

Melco Continues Macau Hotel and Retail Investments

Despite weaker earnings, Melco recently opened REM, a refurbished 150-room hotel at City of Dreams Macau.

The operator is also upgrading retail and dining facilities, with sections reopening from late 2026 and construction continuing into summer 2027.

Meanwhile, Melco committed MOP828 million to the Macau Government Guidance Fund, part of a combined MOP9 billion contribution from six casino operators.

The fund supports economic diversification, including businesses outside gambling. Melco expects its contribution to count toward existing investment commitments under its Macau gaming concession.

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