Momentum accelerates ahead of a key year for Genting Malaysia as it builds towards its New York expansion.
The operator is gearing up to expand its operations in New York after Resorts World New York City (RWNYC) was issued one of three full commercial casino licences by the New York State Gaming Commission.
It’s a continued focus on strong overseas operations that cemented a successful period for the firm, with it reporting a revenue uptick of 10% to MYR 3.01bn (£619 m) during the final quarter of the year.
This overall growth came even amidst a challenging period for its domestic operations in Malaysia, where revenue dipped by 3% largely as a result of lower game volumes from VIP players, which continue to fuel performance in the region.
A slight dip in VIP player revenue was felt across key Asian markets, with Indonesia also slightly falling as a result.
These challenges were somewhat mitigated by strong room occupancy and a boost in tourism engagement across the continent.
Furthermore, the diversification of the operator’s portfolio continues to pay off, with its investment in Stratford London proving fruitful.
The Stratford London venue cost Genting Malaysia just shy of £28m, which it picked up through its UK subsidiary.
Strong performance from the venue enabled it to bolster revenue from its already thriving UK portfolio. Overall, it reports that total revenue from its UK & Egypt operations reached MYR 523m (£99.6 m), emphasising an effective strategy in terms of diversification.
Malaysian authorities closing in on the online sector
There is real potential for growth in terms of Malaysian engagement, though, even amidst the operator’s expansion of assets and focus.
Malaysia’s regulators are closing in on the thriving illicit market, with enforcement potentially becoming tighter after the country’s Deputy Prime Minister revealed plans to step up action against the country’s online gambling market.
The accelerated action of Datuk Seri Fadillah Yusof could shrink the illicit sector and bolster the opportunity for the regulated market.
Gambling activity is heavily restricted in Malaysia and is limited to a single casino, Resorts World Genting, and some forms of retail sports betting. Meanwhile, all forms of online gambling are strictly prohibited.
However, these proposed measures demonstrate the significant presence of a black market in the country. According to data released in 2023, the country’s illegal gambling market generates approximately RM18bn (£3.43bn) each year, meaning that the government is missing out on RM5bn (£951.4m) in vital tax income.
Seri Fadillah Yusof said: “At the federal level, the government is drafting a law to address illegal gambling. Illegal gambling, if left unchecked, can affect social well-being, especially among our younger generation. That is why the government is treating this matter seriously.”
