RM28.7 Billion in One Quarter – But Illegal Gaming Is Draining Even More From Malaysia’s Economy

Malaysia‘s Casino Revenue – The Big Picture

Specifically, in the financial year ended 31 December 2025 (FY2025), Genting Malaysia recorded group revenue of RM11.88 billion (approximately US$2.7 billion), representing 8.9% growth year‑on‑year. The Malaysian leisure and hospitality operations – primarily Resorts World Genting – contributed RM7.13 billion to this total, up 5% from the previous year.

Meanwhile, the group’s leisure and hospitality division recorded a 4% year‑on‑year increase in revenue to RM5.54 billion for the first quarter of 2026, driven by stronger gaming performance in Malaysia.

In contrast, the broader Malaysian casinos and gaming industry had a market capitalisation of RM28.4 billion as of February 2026, with total earnings of RM601.6 million for the most recent fiscal year. The illegal gambling market, by contrast, is estimated at RM18 billion to RM20 billion annually, costing the government approximately RM5 billion in lost tax revenue.

Official sources: 

Genting Group Financial Performance (2025–2026)

Genting Malaysia – FY2025 and Q1 2026 Performance

Its FY2025 results demonstrated resilience despite challenging conditions. Specifically, the group’s adjusted EBITDA surged 13.3% to RM3.3 billion on the back of 9% revenue growth, driven by higher contributions from Malaysian operations for the first nine months of the year and strong fourth‑quarter performance from the UK.

The fourth quarter of 2025 saw group‑wide revenue rise 10% year‑on‑year to RM3.01 billion (approximately US$783 million), aided by strong performance in the UK and US markets. However, Resorts World Genting experienced a 16% year‑on‑year decline in VIP segment revenue due to lower volume and hold percentage, partially mitigated by a 13% increase in non‑VIP revenue.

Specifically, in the first quarter of 2026 (ended 31 March 2026), Genting Malaysia recorded total revenue of RM2.87 billion, up 10% from RM2.6 billion in the prior‑year quarter. The Malaysian leisure and hospitality operations contributed RM1.67 billion, up 3%, driven primarily by higher gaming business volumes.

However, the company reported a net loss of RM3.8 million for Q1 2026, compared with a net profit of RM72.7 million a year earlier, driven by pre‑opening expenses associated with Resorts World New York City‘s transition to a full‑scale commercial casino. Core earnings fell sharply to RM10 million, down 74% quarter‑on‑quarter and 81% year‑on‑year, missing market expectations. Higher operating costs in the US (due to colder weather and the New York casino opening) and the UK also weighed on earnings.

Visitor numbers at Resorts World Genting fell 4% year‑on‑year to 5.5 million in Q1 2026, partly due to fewer school holidays. Domestic visitors made up 68% of total footfall, while international visitors – mainly from Singapore, China, India and Indonesia – rose 4% year‑on‑year.

Resorts World Genting – Key Operating Statistics

Casino Licence Policy – Monopoly Under Pressure

Malaysia has granted only one casino licence, which was awarded to Genting in 1969. The licence contributed as much as RM5 billion annually to government revenue before the pandemic, according to a report by UOB Kay Hian.

The government has repeatedly rejected proposals for a second licence. In May 2024, Prime Minister Datuk Seri Anwar Ibrahim stated unequivocally that his government would not consider approving another casino in Malaysia. However, responding to reports of early discussions with tycoons about opening a casino in Forest City, Johor, Anwar said, “Affirmative no. There‘s no necessity for Malaysia to venture into the casino business. We are focusing on digital transformation, energy transition, AI, and we believe that this is adequate to push the country forward”.

In April 2025, the government again denied reports that it was considering allowing a casino in Johor, with Anwar calling the claims “lies” and considering legal action against the reporting. The Johor state government also confirmed that no casinos would be opened or allowed to operate in the state.

The government is, however, drafting a new bill to address illegal gambling activities, including online gambling. Deputy Prime Minister Datuk Seri Fadillah Yusof announced in February 2026 that the proposed legislation is expected to be tabled in the Dewan Rakyat as early as the next sitting. The bill will strengthen enforcement mechanisms, particularly for online gambling, and may be introduced as a new standalone act or as amendments to the Common Gaming Houses Act 1953.

Meanwhile, the government raised the betting duty on gaming companies to 8% from 6% previously, effective from June 2026. The effective rate of betting duty is now 7.36%, up from 5.52%. Gaming analysts noted that the hike is not expected to have a huge near‑term impact, but it could accelerate the migration from legal to illegal betting in the long run.

Tourism Drive and Regulatory Reform

Resorts World Genting is preparing for Visit Malaysia 2026 (VM2026), which aims for 35.6–47 million tourist arrivals. New attractions include Eufloria (12.5‑acre botanical garden) and BUNGA 2026. However, Affin Hwang analysts note the resort‘s earnings remain heavily gaming‑dependent, and VM2026 is not expected to boost the stock significantly. However, the illegal gambling market remains a challenge: MCMC removed 15,000+ online gambling content pieces in early 2026. In addition, a new bill targeting online gambling is expected in late 2026, and a point of consumption tax is being finalised. These measures could reshape the legal casino market’s competitive landscape.

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

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

Malaysia‘s casino revenue is overwhelmingly driven by Genting Malaysia’s sole legal casino operation. The group generated RM11.88 billion in revenue for FY2025, with Resorts World Genting contributing RM7.13 billion. In the first quarter of 2026, total revenue rose 10% to RM2.87 billion, although higher operating costs and New York casino transition expenses pushed the company into a net loss of RM3.8 million.

The government maintains its position that no new casino licences will be issued. Prime Minister Anwar Ibrahim has repeatedly rejected proposals for a second licence, including a 2024 proposal for a casino at Forest City, Johor. Instead, the government is focused on digital transformation and AI as economic drivers, while simultaneously drafting a new bill to strengthen enforcement against illegal gambling and raising betting duty on gaming companies to 8%.

With Visit Malaysia 2026 targeting up to 47 million foreign arrivals and major new attractions such as Eufloria and BUNGA 2026 opening at Resorts World Genting, the resort is positioning itself for growth. However, illegal gambling remains a major challenge, with the shadow market estimated at RM18–20 billion annually, costing the government RM5 billion in lost tax revenue each year.

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

Sources: Genting Malaysia Berhad, Genting Berhad, The Edge Malaysia, New Straits Times, Bernama, InterGameOnline, e南洋, News Seehua, TA Sector Research, UOB Kay Hian, KLSE Screener