Gross gaming revenue in Singapore, Malaysia, and the Philippines is on track to match or even surpass pre-pandemic levels, thanks to a surge in visitation and a thriving domestic market, as revealed in a recent report by S&P Global. The research underscores the enduring resilience of the gaming sector in these Southeast Asian nations, with a special nod to the influence of returning Chinese tourists.
The influx of visitors, particularly from China, has been a game-changer for the region, with arrivals in both Malaysia and Singapore rebounding to pre-pandemic levels. Analyst Ong Hwee Yee from S&P Global emphasizes the importance of the premium mass gaming sector as a key revenue driver. “Affluent players are generally less affected by economic downturns compared to lower-income groups,” she noted, reflecting an optimistic outlook for engagement in this segment.
A noteworthy shift occurred when Singapore lifted visa restrictions for Chinese travelers in February 2024, which led to a remarkable 50% increase in gaming revenue year-on-year during the first quarter. Not wanting to miss out, Malaysia introduced a similar visa policy only ten months later as it seeks to capitalize on the renewed interest.
Genting Bhd, one of the region’s titans in hospitality and gaming, is also making headlines with its ambitious venture to establish a casino in New York City. Analysts at S&P Global have flagged this as a potential “event risk,” suggesting that success in securing a full casino license could solidify Genting’s standing in the competitive U.S. market, especially by leveraging the existing Resorts World New York City infrastructure. However, not obtaining this license could dampen its New York prospects significantly.
Elsewhere in the Asia-Pacific, the casino landscape is facing challenges. While Singapore and Malaysia thrive, S&P Global warns that Cambodia’s gaming industry will see a slow recovery, largely due to a crackdown by China on junket operators involved in money laundering and corruption. These operators accounted for about 70% of Cambodia’s gross gaming revenue as of 2019, a stark reminder of how external factors can ripple through local economies.
The legalization of casinos in Thailand has hit a roadblock as the government recently withdrew a flagship proposal put forth by suspended Prime Minister Paetongtarn Shinawatra. With betting remaining largely illegal, some lawmakers continue to advocate for legal casinos as a potential lifeline for the struggling tourism sector. Ong describes Thailand’s casino market as “massive” in potential, yet she cautions that such a development might impact neighboring markets.
In the digital sphere, online gambling in the Asia-Pacific region is projected to soar to US$20.9 billion this year, representing a growth of 12.8% from the previous year. Factors such as technological advancements and changing consumer preferences are propelling this growth, while the region’s considerable population, rising smartphone penetration, and increasing disposable incomes signal a robust compound annual growth rate of 12.77% anticipated between 2025 and 2033.
What key factors are driving the recovery of gaming revenue in Southeast Asia?
The recovery is largely attributed to increased visitation from Chinese tourists and a robust domestic market, along with the premium mass gaming sector, which remains a strong revenue driver.
How is Genting Bhd positioning itself in the U.S. market?
Genting Bhd is exploring the establishment of a casino in New York City, which could enhance its competitiveness in the U.S. if it successfully secures a full casino license, leveraging its existing Resorts World New York City infrastructure.
What challenges do Cambodia’s casinos currently face?
Cambodia’s casinos are grappling with a slow revenue recovery, particularly due to China’s crackdown on junket operators tied to money laundering, which had previously accounted for a significant portion of their gross gaming revenue.
