The?Resorts World Genting, Malaysia’s sole casino operator, is currently under threat of closure due to the rising political influence of an Islamic party,?Parti Islam Se-Malaysia?(PAS). Since 1969, the Genting Group has operated under a casino license granted by the Malaysian government, which requires renewal?every three months. However, the casino’s future is now uncertain due to the growing prominence of PAS, which controls four of Malaysia’s 13 states and is targeting the state of Pahang—home to the Genting Highlands resort—for potential control in the next general election, mandated by early 2028.
PAS’s stance on gambling:
During the party’s annual gathering,?Andansura Rabu, PAS’s deputy commissioner for Pahang, reiterated the party’s stance against gambling, a practice forbidden in Islam, stating, as Fortune reports via Yahoo Finance, “Gambling is harmful, so we have to close it.”?This statement reflects the party’s intent to align state policies with the religious beliefs of Malaysia’s Muslim majority, potentially reshaping the country’s leisure and hospitality landscape.
The conflict over casino operations delves into the broader jurisdictional clash between state and federal powers in Malaysia. While PAS has influence at the state level, the?federal government?holds the authority to issue casino and gaming licenses. This division has led to legal challenges, as seen in Kedah’s state government’s attempt to shut down licensed gaming outlets, which is currently entangled in legal disputes over state versus federal jurisdiction.
The Genting casino is a?significant source of revenue?for Malaysia, contributing heavily through taxes on gambling income and duties on casino machinery. In 2023, Genting Group reported revenues amounting to?$1.4 billion?from its leisure and hospitality segment in Malaysia, a considerable portion of which stemmed from gaming revenue. The potential closure of the casino could have far-reaching economic implications, not only for the local economy but also for the national revenue.
Political landscape and future prospects:
The political landscape in Malaysia has been notably influenced by PAS’s increased stature, especially after becoming the single largest party in the lower house of parliament following the 2022 general election. The party’s conservative agenda, including its stance against gambling, has pressured other political figures, including?Prime Minister Anwar Ibrahim, to adopt more conservative positions to appeal to the Muslim electorate. This dynamic was highlighted by Anwar’s dismissal of rumors about a?new casino and his focus on alternative economic drivers like energy transition and AI.
While Malaysia contemplates the potential shutdown of its only casino, neighboring countries in Southeast Asia are moving in the opposite direction. The Philippines is advancing plans for new casino projects to potentially overtake Singapore as Asia’s second-largest gambling destination, and Thailand is also progressing with plans to introduce casinos.