Asia-Pacific Casino Industry Set for Strong Growth in 2025: Singapore and Malaysia Lead the Charge
The casino industry in the Asia-Pacific region is set to maintain a strong performance in the coming years, particularly in Singapore and Malaysia. This positive outlook is detailed in the “Global Gaming Outlook 2025” report released by Fitch Ratings Inc. on Friday, forecasting robust growth as tourism continues to recover and property investments are underway.
Singapore’s Gaming Revenue on the Rise
Fitch Ratings projects that Singapore’s gaming revenue will increase by 5 percent in 2024, surpassing pre-pandemic levels. This growth is expected to stabilize to around 3 percent in 2025. The report attributes much of this rise to significant gains in the premium mass and VIP gaming segments within the last year, highlighting a successful recovery for Singapore’s casino operators, Genting Singapore Ltd and Marina Bay Sands Pte Ltd.
The analysts noted that the rebound in Singapore’s tourism sector has been a critical driver for the ongoing success of these operators. Furthermore, Fitch emphasized that both casino operators are currently undertaking substantial property enhancements, which are anticipated to support consistent visitor traffic and revenue growth. However, it also cautioned that growth may face limitations due to a mature tourism market and the rising costs of travel within Singapore.
In 2019, Genting Singapore and Marina Bay Sands committed to multi-billion-dollar investments to expand their properties. These expansions are part of agreements with the local government that enable them to extend their duopoly on casino gambling in the city-state until 2030. Many of these investment plans, initially delayed due to the Covid-19 pandemic and other factors, are just now coming to fruition.
Malaysia’s Promising Gaming Revenue Forecast
Turning to Malaysia, Fitch expects that gaming revenue will witness a significant increase of approximately 7 percent in 2025, following an anticipated 11 percent growth for the full year of 2024, which will also exceed pre-pandemic levels. This expected rise is attributed to a rebound in domestic traffic, buoyed by infrastructure improvements, including the completion of repairs to the access road between Batang Kali and Genting Highlands in July 2024. Additionally, an uptick in international tourists as regional travel ramps up is also anticipated.
Fitch forecasts a notable increase in tourist arrivals from China and India, driven by new visa-free arrangements that should contribute to higher overall tourism numbers from the second half of 2024.
Resorts World Genting, operated by Genting Malaysia Bhd and the only licensed casino in the country, reported a third-quarter revenue of MYR 1.68 billion (US$376.6 million), reflecting a slight improvement compared to the previous year’s numbers.
Global Gaming Outlook
While Fitch’s “Global Gaming Outlook 2025” report shines a positive light on the Asia-Pacific casino scene, it also maintains a neutral outlook for global gaming in 2025, reflecting differing trends across regions. The report notes weakening demand in North America, contrasting it with the robust performance expected in Asia-Pacific and temporary regulatory stability in markets across Europe, the Middle East, and Africa.
The outlook highlights a growing disparity in gaming dynamics globally, setting the stage for an intriguing evolution of the gaming industry in various regions in the months and years ahead.
As the Asia-Pacific casino industry continues to navigate its recovery phase post-pandemic, the coming years appear to herald a period of revitalized growth fueled by both domestic and international tourism, as well as capital investments in property and enhancements.