Resorts World Genting (RWG), a Malaysian casino complex, has opened a new mass gaming floor nearly one year after shutting down two of its three casinos. However, financial results may remain unchanged.
Samuel Yin Shao Yang, an analyst with Maybank, paid a visit to RWG's Genting Casino on December 30. His conclusion: "does not compel us to revise our earnings estimates upwards" due to the new floor's 36 live gaming tables, low-volatility slots, and electronic gaming machines.
With little prior warning, RWG's Hollywood and Circus Palace casinos shut down in February of last year, leaving only the more recent SkyCasino available to customers. It is suggested by the New Straits Times that Genting Casino will not be able to adequately compensate. It augments the capacity of the two defunct casinos by less than 10% at less than 1,900 square meters.
Maybank reduced its long-term mass-market gross gaming revenue (GGR) projection from RM3.1 billion (£557.7 million/€668.3 million/$688.2 million) to RM2.85 billion, 25 percent lower, after Genting Malaysia's third-quarter 2024 results.
The two gaming floors were supposed to reopen in December so they could take advantage of the year-end festivities, according to Yin's December letter.
More widespread decline reflected in closures
When asked why the older casinos were closing, RWG parent Genting Malaysia first provided no explanation. After that, it said they were renovating "in an ongoing effort to improve our operational efficiency and enhance the gaming and entertainment experience for our guests" and that hence they were closed.
At last, the corporation admitted that, without a dramatic increase in activity, the casinos will most certainly remain closed.
The 2017 launch of SkyCasino "probably signalled the death knell for (Hollywood and Circus Palace), catering to a new generation of gaming enthusiasts," as reported by Free Malaysia Today.
According to Maybank, Genting Malaysia's valuations are excellent, and the bank has kept its "buy" recommendation even if the future is uncertain.
Malaysia launches tourist initiative
The recovery should be propelled by an uptick in tourists. The feeder markets that rank highest are Singapore, Indonesia, Thailand, Brunei, and India. Indonesian, South Korean, and Taiwanese tourists are flocking to the location.
In addition to three million Chinese visitors, a 136.5% rise, Malaysia saw a jump in visits from India last year.
From January 15th to the 20th, Johor will host the ASEAN Tourism Forum. For all member nations, it's going to be about "robust and sustainable" tourism. More foreign flights to Malaysia have been added to the country's route map as part of the Malaysia Travel Year 2026 initiative, which was unveiled yesterday by the MOTAC.
Resorts World Genting, situated in the Genting Highlands, a hilly area situated above Kuala Lumpur, has all the makings of a successful resort. With its 1965 opening, RWG has been the sole licensed casino resort in Malaysia ever since.
