Genting Malaysia Berhad has reported profits of $15 million for the three months ending June 30, 2024, representing a more than 100% increase on the previous quarter. With increases in revenue across all of its Malaysia, US, and UK gaming and non-gaming markets, total revenue was up 8% year on year standing at $619 million for the period. Its Resorts World Genting flagship venue, outside Kuala Lumpur, saw a 5% increase in revenue to $376 million, representing the largest part of the company’s earnings.
Genting Malaysia is considered one of the leading gaming companies in Asia. It encompasses businesses ranging from plantations and biotechnology to its flagship Resorts World Genting Resorts. The main Genting Highland Resort is located just outside Kuala Lumpur, Malaysia’s capital city, and is the main flagship of the business.
Gambling In Malaysia
The company owns and operates Malaysia’s only legally run physical casino as part of the resort in Pahar. The casino prohibits Muslims from entering, as part of their licensing agreement with the authorities, as well as anybody aged under 21. Gambling is largely prohibited across Malaysia, and online gambling is not regulated, but there are many online options for players in Malaysia. According to gambling expert Khadija Bilal, there are many safe online casino options for locals – they are just based overseas and so don’t have to comply with Malaysian gambling regulations.
Laws in Malaysia dictate that common betting houses, or sports bookmakers, are illegal and anybody found to be operating one of these businesses can be prosecuted. Lotteries are permitted, however, and so too is betting on horse racing at horse racing tracks.
Popular Forms Of Betting
Football betting is one of the most popular online betting activities with bets taken on the Malaysian Super League as well as globally popular leagues including the English Premier League. The country’s love of badminton means there is also a thriving market for badminton sports betting. Global events with Malaysian dates in the calendar also tend to be popular, including the Malaysian Grand Prix and the Motorcycle Grand Prix events.
Due to its legality, and, therefore, availability, horse racing betting has also proven very popular with gamblers. There are approximately 700 lottery operators across the country.
Physical Gambling
The Casino Genting is the country’s online legal casino. It operates in the Genting Highlands Resort, which is more than 6,000 feet above sea level in the Titiwangsa Mountain Range. It is popular with locals, while visitors travel from countries around the world to stay in the luxurious resort. The casino first opened its doors in 1965 and has grown in popularity and stature ever since.
Genting’s Global Business
Today, Genting hosts casinos in Las Vegas, New York, and other cities in the US, as well as venues in China and the Philippines. The group also has more than 30 casinos in the UK with prestigious casinos in London’s Mayfair and Resorts World Birmingham. The latter is one of several Resorts World venues, which not only house casinos but also include hotels, theme parks, water parks, and other venues that attract visitors from around the globe.
Genting’s status as operating the only legal land-based casino in Malaysia sets them apart as an industry leader in the country. Genting Berhad and Genting Malaysia Berhad are found among the country’s top 30 companies by market capitalization.
Genting Highland
The flagship resort outside Genting represents the company’s largest revenue earner. In the three months ending June 30, 2024, the resort earned revenue of $376 million for the quarter, representing a 5% increase in year-on-year prices.
Other Genting Businesses
Away from Malaysia, Genting also enjoyed a successful quarter. The UK and Egypt saw a 20% revenue increase reaching $109 million while in the US and Bahamas, revenue was up 11% to $123 million. In total, the company had quarterly revenue of $619 million, which was an 8% increase compared to the previous year. Revenue resulted in a quarterly profit of $14.6 million, more than double the year before.
The company has said that it is hopeful of the continued recovery of the international travel market, which will help it sustain increased revenue and profits across the board.
Genting Online
The company also operates online, offering approximately 6,000 popular casino games to its players. Some of these games also include live dealer functionality, which is an increasingly popular trend in online gambling. In this case, table games from the Genting Casino in Malaysia are live-streamed to the company’s online casino, and players from around the world can bet on the outcome as though they were physically at the casino.
Possible Malaysian Gambling Law Changes
In 2020, the Malaysian government indicated that it was considering opening up the online gambling market. They pointed to the fact that, currently, only lotteries, horse racing, and the Genting Casino are taxed. Communications minister Zahidi Zainul Abidin pointed to the fact that online gamblers were using sites based in other countries including China and the Philippines and that the tax revenue was being taken away from Malaysian people.
In 2021, the government further confirmed that it planned to address online gambling regulation, but no further details were given as to the number of licenses, the licensing process, or even the types of gambling that might be regulated.
The government has taken some steps to try and curb online gambling, requiring that banks prevent payments from debit and credit cards to known gambling websites. However, the introduction of cryptocurrency and the use of prepaid cards and other services have helped players circumvent these bans.
Cryptocurrency, in particular, has garnered a lot of interest in the gambling industry. Overseas transactions can be processed in a matter of seconds with fees that are often lower than those associated with bank and certainly card payments. Payments are anonymous, too, which means crypto users cannot be prevented from depositing or withdrawing their betting bank when using this method.
It isn’t clear how online gambling would be regulated, especially as Muslims in the country are prohibited from physical gambling to meet Sharia law.
Laws In Neighboring Countries
Neighboring Thailand has similar gambling laws to those in Malaysia with betting on horse races and wagers on the government-sponsored lotteries being the only forms of legal, regulated gambling. There is even a law that prevents ownership of more than 120 playing cards without governmental approval.
Singapore, another neighbor of Malaysia, however, has slightly more relaxed gambling laws. Casinos are permitted in the country, although they must be located inside Integrated Resorts, and some slot machines are also allowed in certain gaming rooms.
Global Gambling
Gambling laws vary from country to country. Genting has a large number of casinos in the UK: a country that is known for having some of the most open, liberal gambling laws. There are betting shops in most towns and even villages, while casinos can be found in most major cities as well as some larger towns.
Bookmakers also operate at horseracing venues and outside sports venues like football stadiums. Online gambling is also legal and regulated, with players able to choose UK-based online casino companies or offshore casino sites. Players in the UK are not liable to pay tax on their winnings, either.
Genting also has casinos in the US, including one in Las Vegas. In terms of casino numbers, Las Vegas is arguably the biggest gambling city in the world, competing with Macau in China for that honor.
Las Vegas has more than 170 casinos and around 100 casino hotels while Nevada, the state in which Las Vegas is located, has more than 400 casinos. The state of Nevada raises just over $1 billion a month in revenue from gambling alone. Despite having fewer casinos, Macau in China’s 50 casinos and 60 casino hotels brings in nearly $2 billion a month in revenue, which makes it more profitable to the government than Vegas.
The Gambling Industry
Global online gambling is worth approximately $60 billion and is expected to go on and reach more than $150 billion by 2030. This growth is expected to continue as a result of the continued availability of smartphones and mobile devices, as well as greater access to casino websites and apps.
According to a study by the UK’s Gambling Commission, conducted in 2021, approximately three-quarters of UK gamblers said they had placed at least one bet using their mobile phone. Approximately 60% of the world’s population now has access to the mobile Internet and this is also expected to increase in the coming months and years.
Conclusion
Genting Malaysia Berhad operates Malaysia’s only physical casino and has more than 30 casinos in other countries across the world. After a difficult couple of years, the group has been posting positive results, with the first half of 2024, especially, showing decent gains in revenue and profits.