Fitch Ratings Anticipates Strong APAC Gambling Results in 2025
Fitch Ratings projects a robust performance for the Asia-Pacific (APAC) casino industry in 2025, with Singapore and Malaysia expected to lead this growth. The anticipated upturn is attributed to a resurgence in tourism and substantial property investments within these nations.
The Singapore skyline at night. (Source: Pixabay)
LISTEN TO THIS ARTICLE:Fitch's "Global Gaming Outlook 2025" maintains a neutral stance on the global gaming industry, citing varied regional dynamics. While the APAC region is expected to perform robustly, North America may experience ebbing demand, and the Europe, Middle East, and Africa (EMEA) markets are anticipated to encounter temporary regulatory stability.
Related: Singapore is Stealing Macau's Gambling VIPsIn Singapore, gaming revenue for the full year 2024 is forecasted to increase by 5%, finally beating pre-pandemic levels. The growth is expected to moderate to approximately 3% in 2025. The surge in revenue is driven by significant expansion in both the VIP and premium mass gaming segments over the past year.
The continuous recovery of Singapore's tourism sector has bolstered the performance of casino operators such as Genting Singapore Ltd and Marina Bay Sands Pte Ltd. Ongoing investments in property improvements and renovations by these operators are anticipated to sustain traffic and revenue growth. However, the mature nature of Singapore's tourism market and rising travel costs may limit further expansion.
Both Genting Singapore and Marina Bay Sands have committed to multi-billion-dollar investments to expand their properties. These initiatives, part of agreements with the Singaporean government to extend their casino duopoly until 2030, experienced delays due to the COVID-19 pandemic but are now progressing.
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Malaysia to Witness Strong Improvements
In Malaysia, gaming revenue is projected to grow by around 7% in 2025, following an estimated 11% increase in 2024, exceeding pre-COVID-19 levels. This rise is attributed to a rebound in domestic traffic, facilitated by the re-opening of an access road connecting Batang Kali to Genting Highlands this past July, and an uptick in international tourists as regional travel recovers. An increase in tourists from China and India, the latter benefiting from visa-free arrangements, is expected to significantly boost overall arrivals.
Genting Malaysia Bhd, which operates Resorts World Genting—the country's sole licensed casino property in Genting Highlands—reported third-quarter revenue of $376.6 million. This figure represents a marginal improvement from a year earlier.
In North America, the gaming sector has shown strong performance following a robust 2022. However, there are indications that regional gaming might be slowing in certain markets. Las Vegas, for instance, continues to improve significantly on its previous gaming revenue records. However, it could also see a dip next year as demand diminishes and the customer mix shifts toward more non-gaming patrons.
The EMEA region is expected to experience limited regulatory challenges, with companies benefiting from the increasing profitability of US online operations. The implementation of the UK Gaming Act review over the medium term is likely to reduce regulatory risks for EMEA companies in 2025.
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