Genting Malaysia’s new mass casino may not be a game changer
Nearly a year after shutting two of its three casinos, Resorts World Genting (RWG) in Malaysia has launched a new mass gaming floor. However, it may not have a significant impact on revenue.
Maybank analyst Samuel Yin Shao Yang inspected RWG’s Genting Casino on 30 December. He concluded that the new area, featuring 36 live tables, low-volatility slots, and EGMs, “does not warrant an upward revision of our earnings forecasts.”
Last February, RWG closed its Hollywood and Circus Palace casinos without notice, leaving only the newer SkyCasino open. Genting Casino is unlikely to compensate for the lost capacity, notes the New Straits Times. At less than 1,900 square metres, it represents under 10% of the two closed casinos’ space.
Consequently, after Genting Malaysia’s third-quarter 2024 results, Maybank cut its long-term mass-market gross gaming revenue (GGR) estimate by 25%, from RM3.1 billion (£557.7 million/€668.3 million/$688.2 million) to RM2.85 billion.
“We had expected both floors to reopen in time for the year-end holidays,” Yin noted in December.
Closures reflect broader downturn
Genting Malaysia initially gave no explanation for shuttering the older casinos. Later, it said the closures were part of “ongoing renovations to improve operational efficiency and enhance the gaming and entertainment experience.”
Ultimately, the company acknowledged that the casinos may remain closed unless business conditions improve.
According to Free Malaysia Today, the 2017 opening of SkyCasino “likely marked the end for Hollywood and Circus Palace, appealing to a new generation of gaming enthusiasts.”
Despite this uncertainty, Maybank “still considers Genting Malaysia’s valuations attractive” and maintains its “buy” rating.
Malaysia mounts tourism campaign
Tourism growth could support a recovery. Singapore remains the main feeder market, followed by Indonesia, Thailand, Brunei, and India. The country is also seeing rising interest from visitors from South Korea, Taiwan, and Indonesia.
Malaysia recorded a surge in Indian tourists last year and hosted three million Chinese visitors, a 136.5% increase.
The ASEAN Tourism Forum will take place in Johor from 15–20 January, highlighting “robust and sustainable” tourism among member states. Additionally, the Malaysia Travel Year 2026 campaign, launched by the Ministry of Tourism, Arts, and Culture (MOTAC), has expanded international air connections.
These developments are positive for Resorts World Genting, situated in the Genting Highlands above Kuala Lumpur. RWG, Malaysia’s only licensed casino resort, originally opened in 1965.