Cambodia’s growing casino and tourism industry could pose a challenge to Genting’s Malaysia operations, according to a note from JP Morgan analysts.
The analysts noted that Malaysia is expected to lose its position as the third-largest gaming market in Southeast Asia to Cambodia this year. “We think this shift accelerates with regional property ramp-up at a time when Genting Malaysia looks to cut promotional spending, driving visitation away from its property,” it said.
Mainland Chinese visitors to Cambodia have increased over a third over the last two years.
Cambodia’s casinos enjoy much lower tax rates than in Malaysia, and easier rules relating to online gaming.
“Cambodia’s fast growing gaming market in Sihanoukville may emerge as another threat for Genting Malaysia as Belt and Road Initiative-led investments drive Chinese visitation and spending to that region and as the quality of properties improves,” the note concluded. (AGB)