Genting Malaysia’s New Mass-Market Casino Might Not Be a Game-Changer
Almost a year after closing two of its three casinos, Resorts World Genting (RWG) in Malaysia has launched a new mass gaming floor. However, this move is unlikely to significantly impact the company’s earnings.
Maybank analyst Samuel Yin Shao Yang visited RWG’s Genting Casino on December 30 and concluded that the new gaming floor, featuring 36 live gaming tables, low-volatility slot machines, and electronic gaming machines (EGMs), “does not compel us to revise our earnings estimates upwards.”
In February last year, RWG closed its Hollywood and Circus Palace casinos without prior notice, leaving only the newer SkyCasino operational. The newly opened Genting Casino is unlikely to compensate for the lost capacity, as it spans less than 1,900 square meters—under 10% of the combined area of the two closed venues, according to the New Straits Times.
Following Genting Malaysia’s third-quarter 2024 financial results, Maybank lowered its long-term mass-market gross gaming revenue (GGR) forecast 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 capitalise on the year-end holidays.”
Casino closures reflect a wider downturn
Initially, Genting Malaysia did not provide reasons for shutting down the older casinos, later stating the closures were for renovations aimed at improving operational efficiency and enhancing guest experiences. Eventually, the company acknowledged that the casinos are unlikely to reopen unless business conditions improve.
Free Malaysia Today reported that the 2017 launch of SkyCasino “likely spelled the death knell for Hollywood and Circus Palace,” as the newer venue better appeals to a younger generation of gamers.
Despite these uncertainties, Maybank maintains a “buy” rating on Genting Malaysia, believing the company’s valuation remains attractive.
Tourism campaigns offer hope
A rebound in tourism is expected to support Resorts World Genting’s recovery. Singapore remains the top feeder market, followed by Indonesia, Thailand, Brunei, and India. Tourist interest is growing from Indonesia, South Korea, and Taiwan.
Last year, Malaysia saw a surge in visitors from India and welcomed three million tourists from China—a 136.5% increase.
From January 15-20, the ASEAN Tourism Forum will take place in Johor, promoting “robust and sustainable” tourism across member countries. Additionally, Malaysia’s Ministry of Tourism, Arts, and Culture (MOTAC) launched the Malaysia Travel Year 2026 campaign, expanding international flight connections to the country.
These developments bode well for Resorts World Genting, situated in the mountainous Genting Highlands above Kuala Lumpur. Opened in 1965, RWG remains Malaysia’s only licensed casino resort.