Galaxy Entertainment Group Ltd is advancing the development of Phase 4 of its Galaxy Macau resort in Cotai, with plans targeting a 2027 completion. Announced in conjunction with the company’s fourth-quarter and full-year 2025 financial results, the expansion aims to enhance the resort’s appeal to premium customers, a sector of significant interest amidst intense competition in Macau. Central to these plans is the potential for an increased allocation of gaming tables by the Macau government, which would support the project’s focus on high-end gaming and non-gaming facilities.
Phase 4 is set to transform the resort with expansive offerings over an area of approximately 600,000 square meters, including a 5,000-seat theatre and a water resort deck, complementing the casino’s current attractions. Galaxy Entertainment’s management has emphasized that the expansion is intended to strengthen the resort’s position in the premium mass market. However, the success of this strategy hinges on governmental approval for additional gaming tables, which play a critical role in accommodating the anticipated increase in premium play demand.
Galaxy Entertainment’s current gaming concession, effective from January 1, 2023, permits the operation of 1,000 gaming tables and 1,700 gaming machines. As Phase 4 progresses, the company and industry analysts await the government’s decision on table allocation. In the meantime, Galaxy is exploring the optimization of existing resources to enhance yields, should new allocations not be forthcoming. This approach reflects similar strategies employed at its Horizon Plus premium gaming area, where table placement is adjusted to maximize profitability.
The company is actively lobbying for the additional tables, as highlighted by brokerage Jefferies’ analysts Anne Ling and Jingjue Pei. This request forms part of Galaxy’s broader strategy to maintain its competitive edge in the vibrant Macau market. Should the request be denied, the company plans to strategically reallocate its current tables to areas yielding higher returns, particularly those that attract premium players.
Phase 4’s design and development decisions have been shaped by customer feedback, which has advocated for more luxurious offerings. Consequently, room sizes within the new phase will increase, resulting in fewer total units, now estimated at 1,350 compared to an earlier plan of 1,500. This shift coincides with a significant rise in capital expenditure (capex), with Galaxy Entertainment planning to invest between HKD10 billion and HKD11 billion in 2026, a substantial increase from the HKD3.5 billion spent in 2025. This investment will support the development of Phase 4 and other enhancements to its existing resort facilities.
On the financial front, Galaxy Entertainment is focused less on market share by revenue and more on capturing a larger portion of the industry’s adjusted EBITDA—a critical performance metric. According to analysts from Jefferies and JP Morgan, Galaxy’s adjusted EBITDA market share has risen from 22 percent in 2024 to 24 percent in 2025, placing it second after Sands China Ltd. JP Morgan noted that Galaxy’s management, led by chairman Francis Lui Yiu Tung, has effectively managed operational costs, which has contributed to improved profit margins. The chairman’s involvement in the earnings call underscored the alignment of major shareholders, including his family, with minority investors, reinforced by a corporate structure free from intermediate holding companies.
Galaxy Entertainment’s dividend strategy also reflects its balancing act between reinvestment and shareholder returns. JP Morgan indicated that dividend payout ratios have progressively increased, reaching about 65 percent in the latter half of 2025 from 58 percent in the first half, 50 percent in 2024, and 32 percent in 2023. This progression suggests room for further dividend growth as the company navigates the evolving Macau market landscape.
Looking ahead, the key focus for Galaxy Entertainment will be securing the additional gaming tables necessary to realize its Phase 4 ambitions. The outcome of this request will significantly impact the project’s ability to cater to the premium market effectively. Meanwhile, the company will continue to refine its operational strategies to optimize existing resources and maintain its competitive position in Macau’s challenging gaming environment. The regulatory response and the market’s reception to these developments will be critical as the 2027 completion of Phase 4 approaches.
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