Asia-Pacific casinos to perform strongly in 2025, led by Singapore & Malaysia, boosted by tourism recovery and property investments, according to Fitch Ratings.
The Asia-Pacific casino industry is on track for robust performance in 2025, fueled by a resurgence in tourism and strategic property investments. According to the latest Global Gaming Outlook 2025 report released by Fitch Ratings Inc. on December 13, 2024, the casino sectors in Singapore and Malaysia are expected to lead the region’s growth.
Singapore Gaming Sector to Surpass Pre-Pandemic Levels
Fitch projects a 5% increase in Singapore’s gaming revenue for the full year of 2024, driven by strong growth in the premium mass and VIP gaming segments. The report indicates this upward trend will continue into 2025, although at a slower pace, with revenue growth expected to moderate to 3%.
“We estimate higher gaming revenue compared to pre-COVID-19 levels, driven by significant growth in the premium mass and VIP gaming segments over the last year,” Fitch stated.
Two major players dominate Singapore’s casino market: Genting Singapore Ltd, which operates Resorts World Sentosa, and Marina Bay Sands Pte Ltd, the operator of the iconic Marina Bay Sands integrated resort. Both properties have benefited significantly from the continued recovery of Singapore’s tourism sector post-pandemic. Fitch emphasized that ongoing property investments by both operators would play a key role in sustaining revenue growth.
The two casino giants are in the midst of multi-billion-dollar expansion projects, commitments made in 2019 as part of agreements with the Singaporean government to maintain their duopoly in the city-state’s casino market until 2030. While these projects were delayed by the COVID-19 pandemic, they are now progressing and expected to attract more visitors, strengthening long-term growth.
However, Fitch also cautioned that growth potential in Singapore may face limits due to the city’s mature tourism market and rising travel costs. “Robust performance at the Singapore casino operators … is supported by the continual recovery of Singapore’s tourism sector, though growth is likely to be capped by a mature tourism market and increasing cost of travel in Singapore,” analysts noted.
Malaysia to Benefit from Infrastructure Recovery and Tourist Influx
In Malaysia, gaming revenue is forecast to grow by an estimated 11% in 2024 and a further 7% in 2025, exceeding pre-pandemic levels. The recovery will be supported by a resurgence in domestic traffic and increased international tourist arrivals, particularly from China and India.
Fitch cited the recent completion of critical infrastructure as a key driver for Malaysia’s positive outlook. Repairs to the access road connecting Batang Kali to Genting Highlands were completed in July 2024, improving accessibility to Resorts World Genting, Malaysia’s sole licensed casino property operated by Genting Malaysia Bhd.
“We estimate higher revenue due to a domestic traffic rebound, helped by the completion of repairs to an access road connecting Batang Kali to Genting Highlands in July 2024, and an increase in international tourists as regional travel continues to recover,” the report explained.
Fitch also highlighted the positive impact of visa-free travel arrangements for Indian and Chinese tourists, which are expected to boost Malaysia’s overall tourist arrivals starting in the second half of 2024.
Genting Highlands remains a cornerstone of Malaysia’s gaming industry. In the third quarter of 2024, Resorts World Genting generated MYR1.68 billion (US$376.6 million) in revenue, a slight improvement compared to the same period last year, according to Genting Malaysia’s most recent financial filing.
Varied Global Outlook for 2025
While Asia-Pacific remains a bright spot in Fitch’s global forecast, the outlook for other regions remains mixed. The report cited “ebbing demand in North America” and “temporary regulatory stability” in Europe, the Middle East, and Africa (EMEA) as reasons for maintaining a neutral global gaming outlook in 2025.
Fitch’s analysts did not provide specific projections for Macau, another key market in the Asia-Pacific region. However, they emphasized that the growth momentum in Singapore and Malaysia reflects strong regional demand and recovering travel trends.
The Asia-Pacific casino market, particularly in Singapore and Malaysia, is poised to outperform in 2024 and 2025. As regional tourism continues to recover and operators invest heavily in property enhancements, the gaming sectors in both countries are expected to thrive. While challenges such as rising travel costs and mature markets may moderate growth, the overall outlook remains positive, making the region a focal point for the global gaming industry in the coming years.
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