Samuel Yin Shao Yang, an analyst with Maybank, assessed the new gaming floor at Resorts World Genting (RWG) on December 30. He concluded that the addition, featuring 36 live gaming tables along with low-volatility slots and electronic gaming machines (EGMs), is not significant enough to prompt an increase in earnings estimates.
The closure of RWG's Hollywood and Circus Palace casinos last February, without prior notice, left only the newly established SkyCasino operational. According to the New Straits Times, the new Genting Casino will not significantly offset the loss, as its under 1,900 square meters contributes less than 10% of the capacity formerly provided by the closed venues.
Following Genting Malaysia's third-quarter results for 2024, Maybank revised its long-term forecast for mass-market gross gaming revenue (GGR), reducing it by 25% from RM3.1 billion (£557.7 million/€668.3 million/$688.2 million) to RM2.85 billion.
Yin noted in December, "We had expected both gaming floors to reopen to capitalize on the year-end holidays."
The closures point to a broader decline in the sector. Initially, Genting Malaysia did not disclose the reasons for shutting down the older casinos. Later, they described the closures as part of renovations aimed at enhancing operational efficiency and improving guest experiences. Ultimately, the company acknowledged that the casinos likely won't reopen unless demand rises.
Free Malaysia Today noted that the opening of SkyCasino in 2017 likely dealt a significant blow to the Hollywood and Circus Palace, as it catered to a new generation of gaming enthusiasts.
Despite these challenges, Maybank maintains its “buy” rating, believing that Genting Malaysia’s valuations remain attractive.
To help drive recovery, Malaysia is ramping up its tourism initiatives. Singapore tops the list of feeder markets, followed by Indonesia, Thailand, Brunei, and India. There has also been an increase in tourist interest from Indonesia, South Korea, and Taiwan. Last year, Malaysia saw a 136.5% increase in arrivals from China and a surge in visitors from India.
The ASEAN Tourism Forum will take place in Johor from January 15 to 20, focusing on promoting sustainable tourism across member states. Additionally, the Ministry of Tourism, Arts, and Culture (MOTAC) launched the Malaysia Travel Year 2026 campaign aimed at enhancing international air connectivity with the country.
These developments are promising for Resorts World Genting, which sits in Genting Highlands, just above Kuala Lumpur. Established in 1965, it is Malaysia’s only licensed casino resort.
