While casino markets in certain parts of the world are still walking on eggshells as they try to recover from the blow dealt at the hands of the coronavirus, other areas are already beginning to catch their breath. The U.S., Macau and the Philippines can’t be included in the latter group because they all three are only slowly getting back on their feet – the U.S. has even fallen a couple of times as it tried to recover. However, other countries, such as Malaysia and Cambodia, are starting to show positive signs of being well on their way to perfect health, and could be back in action before too much longer.
Resorts World Genting (RWG), the Malaysia-based casino resort operated by Genting Malaysia, started to allow gamblers back in on June 19. Since then, activity has continued to ramp up and, more recently, the resort’s hotel capacity has gone from 2,000 to 4,000 in order to meet the greater demand. July has been particularly strong for the property and the turnout reflects levels of over 50% what they were before the coronavirus pandemic forced RWG to shut down on March 18.
Financial services firm CGS-CIMB prepared a note on Genting Malaysia’s return, adding that both VIP and mass gaming are seeing substantial growth. There are still travel restrictions in place that prevent international gamblers from making a trip to the resort, but RWG has always relied heavily on the local gambling market, so the impact from a lack of global gambling hasn’t been that great. The financial firm adds, “Typically, some 70% to 80% of Resorts World’s visitor arrivals are locals, and there has been pent up demand for domestic tourism and gaming post-MCO (Movement Control Order). Hence, we believe RWG’s business will perform better than other casinos in the region that are more dependent on international visitors.”
In Cambodia, according to Inside Asian Gaming (IAG), NagaWorld is now fully operational – at least those areas that aren’t on the build-out list. NagaCorp’s massive gaming resort property was allowed to launch VIP table games and slots starting July 7 and then, as of July 18, was given permission to open the main gaming floor. With that, Naga1 and Naga2 are back in business and moving full speed ahead toward 100% recovery.
It isn’t clear, in terms of dollar figures, how well the casino is doing; however, the information presented to IAG indicates that NagaCorp is on track with its expectations and targets. The casino operator said that it is “satisfied with the results” following the July 7 relaunch. Given the fact that NagaWorld is the only casino within 120 miles of the Cambodian capital of Phnom Penh, it doesn’t have to worry too much about friction with any local competition.
The relaunch should be really good news for NagaWorld employees. About a month ago, the casino announced that it would halt coronavirus subsidy pay for furloughed workers, leading to protests by employees against both the casino and the country’s Labor Ministry. Now that things are returning to normal, NagaCorp, which earned a profit of $521 million last year, can break out the checkbook and start paying wages once again.
