Surge in Chinese Players Boosts Southeast Asian Casinos

According to a recent report by S&P Global, gross gaming revenue in Singapore, Malaysia, and the Philippines is on track to reach or surpass pre-pandemic levels, thanks to a surge in visitors and a strong domestic market.

The return of Chinese tourists to Southeast Asia has been a key driver of this recovery, with visits to Malaysia and Singapore returning to pre-pandemic numbers.

Premium Market and Visa Policies Drive Growth

S&P Global analyst Ong Hwee Yee notes that the premium mass gaming market continues to bolster industry revenues. "Affluent players may be less exposed to a weakening economy than lower-income groups," Ong explained.

Singapore's decision to implement visa-free travel for Chinese nationals in February 2024 led to a 50% year-on-year increase in gaming revenue in the first quarter of last year. Malaysia followed suit with a similar policy in December 2023.

Genting Bhd's Expansion and Challenges

Genting Bhd, a major player in the region's casino industry, is exploring opportunities to establish a casino in New York. While this could position the company strongly in the U.S. market, failure to secure a full casino license may hinder its competitiveness.

Challenges in Other Asia-Pacific Markets

Other markets in the Asia-Pacific region face hurdles, with Cambodia's casinos, heavily reliant on Chinese players, experiencing slow revenue recovery due to China's crackdown on junket operators. Thailand's potential casino market remains untapped after the withdrawal of a bill to legalize casinos.

The Rise of Online Gambling

Online gambling in the Asia-Pacific region is expected to grow by 12.8% this year, reaching US$20.9 billion, driven by technological advancements and changing consumer preferences.