Genting Malaysia has become the latest gambling operator to sound the alarm bells over the impact of the conflict in the Middle East.
The company told its investors that it is bracing for the impact of ‘ongoing political tensions’ and ‘broader macroeconomic uncertainties’ amid a slow start to 2026, as consumers feel the pressure of the rising cost of living caused by the ongoing regional conflict.
Despite opening the doors of the first regulated commercial casino in New York, the operator has cautioned against the prospects of international growth.
The company said in its Q1 update: “Global growth momentum is expected to soften amid ongoing geopolitical tensions in the Middle East and broader macroeconomic uncertainties
“Cross-border tourism demand is expected to face challenges due to weaker outbound travel trends and higher travel-related costs. Against this backdrop, the regional gaming market may face a more challenging operating environment. The Group remains cautious of the near-term prospects of the leisure and hospitality industry.”
Profits plunge
Genting Malaysia reported a 10% year-on-year increase in revenue to RM2.87bn (£538.5m). However, the company’s profit before tax fell by 77% year-on-year to RM43.1m (£8m).
Some of this performance was attributed to the costs of transitioning Resorts World New York to a fully commercial casino after the company was awarded a casino licence in December.
As a result of these challenges, Genting Malaysia recorded a net loss of RM25.2m (£4.73m), reversing a Q125 net profit of RM52m (£9.75m).
On a positive note, Genting Malaysia praised the performance of its Genting Casino Stratford venue in London, which ‘cushioned the adverse impact of geopolitical tensions’ and led to the company’s UK and Egypt segment recording year-on-year revenue growth of 11% to RM460.7m (£86.6m) in the first three months of 2026.
The company’s flagship resort in Malaysia also grew slightly to RM1.67bn (£313.4m), up 3% year-on-year, driven by improvements in the property’s gaming segment.
However, Genting said that it is focused on ‘operational discipline and yield management’ in the country amid the expected headwinds.
The company said: “In Malaysia, the outlook is expected to remain cautious, as growth may moderate due to inflationary pressures, geopolitical uncertainties and external headwinds weighing on the broader domestic economy.”
Room for optimism?
Despite the challenges, Genting Malaysia said that it remains positive about the long-term prospects of the global leisure and hospitality sector.
The company’s prospects are also boosted by the monopoly it will hold in the New York casino market, as projects led by Hard Rock Entertainment and Bally’s are not expected to open until 2030.
Though the company’s casino opened for business on 28 April, Genting Malaysia said it continues to roll out additional facilities and amenities. The complete expansion of the venue, located at the Aqueduct Racetrack, is expected to be complete in 2029.
Through the first two weeks of operation, the casino generated gross gaming revenues of $27.2m (£20.3m) and $26.7m (£19.9m), respectively.
