RM2.87 Billion in One Quarter, But Illegal Operators Are Taking Even More — Malaysia‘s Gambling Revenue in 2026

Malaysia’s Gambling Revenue – The Big Picture

The broader Malaysian casinos and gaming industry had a market capitalisation of RM28.4 billion as of February 2026. Industry‑wide annual revenue reached RM56.7 billion, with total earnings of RM601.6 million for the most recent fiscal year. The legal gambling sector in Malaysia is projected to grow at a compound annual growth rate (CAGR) of 5.4% from 2026 to 2032, driven by increasing internet and mobile penetration, digital payment adoption and rising sports enthusiasm.

However, the legal market’s reported revenue tells only part of the story. According to 2023 data, Malaysia‘s illegal gambling market generates an estimated RM18 billion to RM20 billion annually, costing the government around RM5 billion in lost tax revenue each year.

The legal gambling market comprises three main revenue streams: casino gaming (dominated by Genting Malaysia Berhad), number forecast operators (NFOs) such as Sports Toto, Magnum 4D and Da Ma Cai, and a small amount of legal horse‑race betting at licensed turf clubs. In addition, a new legal football betting operation, Ascot Sports, is expected to launch in late 2026, which could add a new revenue stream to the legal market.

Official sources: 

Malaysia Gambling Revenue – Key Statistics (2026)

Genting Malaysia – The Casino Revenue Engine

Genting Malaysia Berhad is the dominant force in Malaysia’s legal gambling market. In the first quarter of 2026 (ended 31 March 2026), the company recorded total revenue of RM2.87 billion, a 10% increase year‑on‑year from RM2.6 billion in the prior‑year quarter. Revenue from Malaysia’s leisure and hospitality operations grew 3% to RM1.67 billion, driven primarily by higher contributions from the gaming segment.

Despite the revenue increase, the company reported a net loss of RM3.8 million for the quarter, compared with a net profit of RM72.7 million a year earlier. The loss was primarily due to pre‑opening expenses associated with Resorts World New York City’s transition into a full‑scale commercial casino. Profit before taxation fell 77% year‑on‑year to RM43.1 million.

Across the wider Genting group, parent company Genting Berhad recorded a net profit of RM101.1 million in Q1 2026, up from RM4.6 million in Q1 2025, driven by lower impairment losses. Group revenue rose 2% to RM6.66 billion.

Resorts World Genting, the country‘s only legal land‑based casino, attracted over 20 million visitors in 2025 and remains the primary revenue driver for Genting Malaysia’s domestic operations. Affin Hwang analysts noted that earnings remain heavily dependent on the gaming business.

Official website: https://www.rwgenting.com/

Genting Malaysia Q1 2026 Revenue Breakdown

Number Forecast Operators (NFOs) – Stagnation and Structural Decline

The three number forecast operators (NFOs) – Berjaya Sports Toto, Magnum 4D and Da Ma Cai – face a more challenging revenue environment. Betting revenue across the three NFOs has historically ranged between RM2.8 billion and RM3.3 billion, excluding the pandemic‑affected years of FY2020 to FY2022.

Magnum’s first‑quarter 2026 revenue came in at RM575.2 million, down 11.4% year‑on‑year. The slowdown was mainly due to a lower number of draws (41 vs 42) and a lower sales per draw of RM14 million, down from RM15.4 million in the same quarter of the previous year. Analysts note that sales per draw have trended lower year‑on‑year, indicating structural headwinds from illegal number forecast operators (NFOs), while waning ticket purchases among younger demographics continue to cap upside valuation.

For the quarter ended 31 December 2025, Berjaya Sports Toto reported revenue of RM1.48 billion. For Q2 FY2026 (ended 30 September 2025), revenue was RM1.50 billion, a 3.7% increase from the previous year, though profit margins remain squeezed by competition from illegal operators.

Illegal NFOs are now 1.5 to two times the size of the legal lottery industry. These shadow operators offer significant advantages: daily draws (compared to the legal limit of three to four draws per week), higher payouts and 24/7 mobile access – benefits that legal NFOs cannot replicate.

The Illegal Gambling Market – Billions in Shadow Revenue

The illegal gambling market generates an estimated RM18‑20 billion annually, costing the government RM5 billion in lost tax revenue. Deputy Prime Minister Fadillah Yusof confirmed new legislation is being drafted to target illegal operators. Prime Minister Anwar Ibrahim noted enforcement challenges, as offshore platforms can open and close rapidly.

Early 2026 enforcement actions highlight the scale: MCMC removed 15,519 gambling content pieces in 15 days. In April 2026, Johor Immigration crippled a syndicate making RM900,000 monthly. In February 2026, police arrested 388 people in raids across KL, Selangor and Penang, seizing luxury vehicles and computer equipment. MCMC received 203,918 public content removal requests (91% gambling/scams), and 81% of flagged gambling content was on Facebook. A new bill to strengthen enforcement is expected in late 2026.

Illegal Gambling Market Estimates (2026)

Malaysia‘s gambling revenue in 2026 is defined by duality. The legal market, led by Genting Malaysia with RM2.87 billion in quarterly revenue, generated substantial returns for investors and tax revenue for the government. The broader casino and gaming industry’s annual revenue reached RM56.7 billion, with a market capitalisation of RM28.4 billion.

However, the illegal gambling market remains a dominant force, draining an estimated RM18 billion to RM20 billion annually and costing the government RM5 billion in lost tax revenue. In early 2026, MCMC removed over 15,000 pieces of online gambling content, and police made hundreds of arrests in syndicate raids. A new gambling bill is expected in late 2026 to strengthen legal powers against illegal operators.

The legal market is projected to grow at 5.4% CAGR through 2032, driven by digital adoption and sports betting, while the government‘s intensified enforcement aims to shrink the illegal market over time. The new Ascot Sports football betting licence could also potentially capture a portion of illegal demand, though the shadow economy will likely remain a significant challenge for the foreseeable future.

Official website: https://www.mof.gov.my/

Sources: Genting Malaysia financial reports, Simply Wall St, 6Wresearch, iGamingExpert, Bernama, The Edge Malaysia, InterGameOnline