Gross gaming revenue in Singapore, Malaysia, and the Philippines is projected to near or exceed pre-pandemic levels, supported by increased visitation and a robust domestic market, according to a report by market researcher S&P Global.
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A woman passes the Resorts World Sentosa casino in Singapore. Photo by Reuters |
The recovery is further fueled by the return of Chinese tourists to Southeast Asia, with Chinese visits to Malaysia and Singapore reaching pre-pandemic numbers, according to the analyst, it said.
S&P Global analyst Ong Hwee Yee highlighted that the premium mass gaming market continues to support industry revenues in the region.
“Affluent players may be less exposed to a weakening economy than the lower-income groups… Players return and remain engaged,” she said, as reported by Business Times.
Singapore saw a significant influx of Chinese players after implementing visa-free travel for them in February 2024, resulting in a 50% year-on-year gaming revenue increase in the first quarter last year.
Malaysia introduced a similar visa policy in December 2023.
Genting Bhd, a major Malaysian hospitality group with operations in Malaysia and Singapore, is a key player in the region’s casino industry.
The company is exploring the establishment of a casino in New York, USA, which S&P Global identifies as an “event risk” that could affect its overall revenue.
The researcher noted that securing a full casino license could position Genting Bhd strongly in the U.S. market, leveraging its existing Resorts World New York City infrastructure.
However, failure to obtain the license could hinder the competitiveness of its New York operations, according to the report.
In the rest of Asia-Pacific, casinos might struggle due to institutional barriers, S&P said.
Ong indicated that markets like Cambodia will experience a slower revenue recovery. Cambodian casinos, heavily reliant on Chinese players – have been hit hard by China’s crackdown on junket operators linked to money laundering and corruption.
In 2019, these operators accounted for roughly 70% of Cambodia’s gross gaming revenue.
In Thailand, efforts to legalize casinos were halted when the government recently withdrew a flagship bill proposed by suspended Prime Minister Paetongtarn Shinawatra.
While betting remains largely illegal in the country, some lawmakers have argued that casinos could bolster the struggling tourism sector.
Ong described Thailand’s potential casino market as “massive” if legalized, but cautioned that such a move could impact operations in neighboring markets.
Meanwhile, online gambling in the Asia-Pacific region is forecast to reach US$20.9 billion this year, a 12.8% growth from last year, driven by technological advancement and shifting consumer preference, according to a report by India-based Market Data Forecast.
The region’s large population base, increasing smartphone penetration, and rising disposable incomes are set to contribute to an expected compound annual growth rate of 12.77% between 2025 and 2033, it added.
