Southeast Asian online gambling has seen significant growth recently, numbers that might just be on par with pre-lockdown stats. More specifically, Singapore, Malaysia, and the Philippines are at the forefront of the gross gaming revenue boom. Many have begun questioning the cause of this, and all fingers point at one particular source: the return of Chinese tourists. This is significant news for the regional market as it indicates a potential bounce back from the post-lockdown dip in revenue.
Exploring the various offerings available at these iGaming platforms can help one better understand the appeal of Southeast Asian online gambling to Chinese tourists. For one, Malaysian online casinos offer generous bonuses, free spins, and fast, secure withdrawals, alongside games such as slots, 4D lotto, fishing, and live dealers. Even more, claiming bonuses in ringgit is another benefit, especially for tourists, as they can use this to fund their adventures further.
Of course, these are some great service offerings, with industry experts projecting a 12% increase from last year. In total, online gambling revenue is expected to hit a whopping US$20.9 billion in 2025 for the Asia-Pacific region. While the visa-free travel policies in Singapore and Malaysia can be attributed to the influx of Chinese tourists, high-rollers also flock to these platforms. As tourist hotspots, Malaysia and Singapore are expected to lead the charge of this revenue boom.
As tourist hotspots, their established infrastructure and integrated resorts explain why they would be at the forefront of the boom. Additionally, Genting Bhd’s strategic positioning in both countries (a key player in Southeast Asia) further contributes to the influx of tourists. In Malaysia, there is Genting Highlands, and in Singapore, Resorts World Sentosa is run via Genting Singapore. Of course, Genting has operations globally, but the investment and leisure company heavily contributed to the hospitality sector, boosting revenue in that end.
It also helps to look at how these nations benefit from the thriving gambling sector, including a healthier economic landscape overall. Small businesses gain more clientele, and there is a market upswing in property rentals and other accommodation services (outside of hotels). The influx also boosts work opportunities in local communities, thus enhancing the quality of living for many citizens. This is not to mention the annual gross domestic product (GDP), wherein the sector contributes 3-4% (specifically in Singapore).
However, some challenges might come with the boom in online casino revenue, such as the risk for key players. For example, Genting Bhd has expressed interest in opening casinos outside of Southeast Asia (New York has been mentioned). Despite their success within their region, this might pose a risk when competing with operators on an international scale. In addition, even though business is booming in Singapore and Malaysia, other Asia-Pacific markets like Cambodia are not doing as well.
Looking at the regulatory landscape, Chinese tourists may only enjoy access to Malaysian and Singaporean online casinos while visiting. China has a crackdown on junket operators, which significantly impacts regional gaming dynamics as tourists will only be temporary customers. Further contrast to the success in Singapore and Malaysia is the failed legalization of online casinos in Thailand. Halting efforts have thrown a spanner in the works and presented a unique market landscape.
Despite these challenges, the overall landscape seems to flourish thanks to Singapore, Malaysia, and the Philippines. The growth forecast is quite large, which may affect how brick-and-mortar casinos operate. Perhaps land-based casinos may add an element of digitalization to their services, or provide players with online options to gain more traction. With the current drivers enough to sustain long-term growth, additional innovation could drive the sector to success.