For Macau, Casinos' Race to Expand Never Stops HONG KONG - The casino operator Galaxy Entertainment said Thursday that it planned to invest 16 billion Hong Kong dollars in the second phase of its latest resort in Macau, the world's largest gambling destination. Homegrown Asian casino companies like Galaxy are stepping up their game in Macau, where they are competing against Las Vegas gambling titans like Las Vegas Sands and Wynn Resorts in the only city in China where casinos are legal. Galaxy, controlled by the Hong Kong property and construction businessman Lui Che Woo, said it planned to open the new, $2.1 billion phase by mid-2015. The projected date is likely to make it the next casino to open in the market, before planned projects by U.S.-owned rivals, including Wynn Macau and MGM China, which are awaiting government approval for their developments. The news came just two weeks after Sands China, the Macau unit of the Las Vegas mogul Sheldon Adelson, opened the Sands Cotai Central casino a short distance from Galaxy's property. Armed with the biggest land bank on the developing Cotai Strip, Galaxy's current casino there accounts for just 25 percent of its total allocated space. The new phase will double the resort's size. Galaxy, which has a market capitalization of $12 billion, is planning to expand its capacity by as many as 500 gambling tables and more than 1,000 slot machines. Galaxy's deputy chairman, Francis Lui, said that the company had not reached formal agreement with the Macau government on the number of tables but that he was confident the phase would add significantly to earnings. Lui Che Woo, who is the chairman of Galaxy, dismissed concerns that labor would be a problem in constructing the new phase. There have been labor issues during a period of rapid development in Macau in recent years. "In the next few years, labor will be more abundant," he said. In 2012, 2013, there are not that many new projects opening. Casino companies are racing to develop new properties to capture a larger slice of the Macau market, where gamblers spent $33.5 billion last year; by comparison, Las Vegas took in $6 billion. So far, only Galaxy, Sands and another local operator, Melco Crown, have a presence on the Cotai Strip, land reclaimed from the sea that the government is trying to establish as a global tourism and leisure hub. Galaxy, 12.6 percent owned by Permira, a European private equity firm, will open two new luxury hotels, a Ritz-Carlton and the world's largest JW Marriott, as part of the project. It will also expand retail space to more than 100,000 square meters, or 1.1 million square feet, with more than 200 luxury stores. Robert Drake, Galaxy's chief financial officer, said that no new equity would be issued and that the expansion would be financed through existing cash and debt. Galaxy has started construction and has 500 workers. Its golden-turreted existing property on the Cotai Strip was the only one to open in Macau last year, helping Galaxy to increase its market share significantly over the past 12 months. Sands China disappoints Sands China reported Thursday a 21 percent increase in first-quarter earnings before interest, taxes, depreciation and amortization to $450.6 million, missing market expectations. Shares in Sands China closed down 2.4 percent in Hong Kong trading, Bloomberg News reported from Hong Kong. Deutsche Bank said the company had lower retail revenue and narrower margins than expected at its Four Seasons Plaza property. Net income climbed 5.8 percent, to $277.4 million. Net revenue gained 25 percent, to $1.45 billion, according to a statement prepared in U.S. accounting standards from its parent, Las Vegas Sands. The parent company reported a 72 percent gain in first-quarter net income, to $498.9 million, beating analysts" projections, aided by its U.S. and Singapore businesses. Casino revenue in Singapore grew 51 percent, to $701.3 million, in the quarter. The Marina Bay Sands there averaged 98 percent occupancy at $341 a night, the company said. In Las Vegas, casino revenue jumped 91 percent to $158.7 million