Malaysia’s only casino is in the political crosshairs as an Islamic party calls for its closure

The government of Malaysia, a Muslim-majority country, granted a casino license to Genting Berhad, a Malaysia multinational best known for its leisure and hospitality business, in 1969. The license has to be renewed every three months.

But the rising influence of Islamic parties in Malaysia could threaten Genting’s more than 50 year history as a purveyor of casino gambling at its resort in the Genting Highlands in the state of Pahang.

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

Genting did not immediately respond to a request for comment.

PAS, as part of an opposition coalition, controls four of Malaysia’s 13 states, and hopes to capture Pahang, the Genting casino’s home, in the next general election which must be held by early 2028.

By coming out against gambling, PAS could be trying to appeal to Malaysia’s Muslim majority. (Gambling is forbidden in the Quran). In the 2022 general election, PAS won 43 out of 222 seats in the lower house of Malaysia’s parliament, making it the single largest party overall.

Yet on Sunday, Andansura admitted even a PAS victory in Pahang may not be enough to ensure the casino’s closure. “The power may not be absolutely on the state’s side, and we may need the federal government as well.”

Malaysia’s federal government has the authority to grant casino and gaming permits. An attempt by Kedah’s state government to close down licensed gaming outlets is caught up in the legal system over a potential conflict between state and federal laws.

Genting’s casino is a moneymaker for the Malaysian government, through taxes on gambling income, duties on casino machinery, and the annual fee.

Genting Group’s revenue for leisure and hospitality in Malaysia reached $6.42 billion ringgit ($1.4 billion) in 2023, with a large part of it coming from gaming revenue. The group also has casinos and resorts in the U.K., the U.S., and Singapore. 

Yet the issue is still a touchy topic in Malaysian politics. Earlier this year, Bloomberg reported that Genting and fellow Malaysian conglomerate Berjaya were planning to build a casino in Forest City, a real estate project from the troubled Chinese developer Country Garden. 

Anwar called the report a “lie,” after it sparked outrage in Malaysia. Later, Anwar added that Malaysia did not need a second casino and said energy transition and AI were industries that would “push the country forward.” Berjaya denied its involvement in any plans to build a casino. 

Even if Malaysia closes its casino, other countries in the region are interested in building their own gambling sectors. Casinos can currently be found in Singapore, Vietnam and the Philippines.

The Philippines is currently considering new casino projects in a bid to overtake Singapore as Asia’s second-largest gambling destination, after the Chinese city of Macau. Thailand is also moving ahead with plans to introduce casinos as well.