Malaysia’s Only Casino Faces Uncertain Future as Islamic Party Pushes for Closure

Resorts World Genting, Malaysia’s only casino, may face closure as the Islamic political party PAS pushes for a gambling ban. PAS, which governs several Malaysian states, has declared its intention to oppose casino operations, further complicating the casino's future amid political tensions.

Islamic Party Pushes for Closure of Malaysia’s Only Casino, Threatening Genting’s 50-Year Legacy

An Islamic political party may soon threaten the Resorts World Genting, Malaysia's sole casino, per Fortune.

In 1969, Genting Berhad, a Malaysian multinational corporation that is renowned for its leisure and hospitality operations, was awarded a casino license by the government of Malaysia, a Muslim-majority nation. The permit must be renewed every three months.

However, Genting's more than 50-year history as a provider of casino gambling at its resort in the Genting Highlands in the state of Pahang may be jeopardized by the increasing influence of Islamic parties in Malaysia.

“Gambling is harmful, so we have to close it,” Andansura Rabu, deputy commissioner for Parti Islam SeMalaysia (PAS), said on September 15 at the political party’s annual gathering.

Genting did not prompt should have been a request for comment.

PAS, a member of an opposition coalition, governs four of Malaysia's 13 states and aspires to annex Pahang, the location of the Genting casino, in the forthcoming general election, which must be conducted by early 2028.

PAS may be attempting to appeal to Malaysia's Muslim majority by publicly opposing wagering. (The Quran prohibits gambling). In the 2022 general election, PAS emerged as the largest party in Malaysia's parliament, winning 43 out of 222 seats in the lower house.

However, on September 15, Andansura acknowledged that even a PAS victory in Pahang may not guarantee the casino's closure. "The state may not have complete control, and we may require the assistance of the federal government."

Malaysia's federal government grants casino and gaming permits. The Kedah state government's attempt to close down licensed gambling outlets is currently trapped in the legal system due to a potential conflict between state and federal laws.

The Malaysian government generates revenue from Genting's casino using taxes on gambling income, duties on casino apparatus, and an annual fee.

Genting’s $1.4 Billion Gaming Revenue Faces Uncertainty Amid Political Tensions and Regional Competition

In 2023, Genting Group generated 6.42 billion ringgit ($1.4 billion) in revenue from leisure and hospitality in Malaysia, with a significant portion of this revenue derived from gaming. Additionally, the organization operates casinos and resorts in Singapore, the United States, and the United Kingdom.

Nevertheless, the matter remains a contentious subject in Malaysian politics. Bloomberg reported earlier this year that Genting and fellow Malaysian conglomerate Berjaya were contemplating the construction of a casino in Forest City, a real estate project developed by the troubled Chinese developer Country Garden.

The report elicited outrage in Malaysia, prompting Anwar to label it a "lie." Anwar later stated that Malaysia did not require a second casino and would advance by implementing energy transition and AI. Berjaya denied any involvement in the construction of a casino.

Other countries in the region are interested in establishing their gambling sectors, even if Malaysia closes its casino. Currently, casinos are situated in the Philippines, Vietnam, and Singapore.

To surpass Singapore as the second-largest gambling destination in Asia, the Philippines is contemplating developing new casino projects, second only to the Chinese city of Macau. Thailand is also making progress in its efforts to establish casinos.