Malaysia's Resort World Genting May Be Excluded From Smoking

Malaysia, which is predominantly Muslim, has very strict gambling laws, and there is only one casino operating in the country. Resort World Genting Casino Resort is a popular tourist destination where people can play, enjoy, and try their luck as a casino in the area.

Malaysia has decided to toughen its public smoking laws, which should basically apply to Resort World casinos as well. Maybank IB Research says there were exceptions to the rules for bars, nightclubs, and casinos when Malaysia introduced the ban. However, while the new smoking ban, which has not yet been fully integrated, may be much stricter, Maybank believes that Genting casinos will continue to be free from the ban.

Macau, the world's largest gambling hub, recently approved a blanket smoking ban and is expected to affect gambling revenues. Customers feel their freedom is restricted and prefer to go to new places with fewer restrictions. New Orleans also created a smoking ban, and casinos were immediately negatively affected. Hong Kong investment analysts believe that Malaysia's implementation of a smoking ban on casinos could result in a 10 percent drop in public market revenues and a 15 percent drop in VIP gambling revenues for Macau gamblers.  

The Malaysian government levied a 6% Goods and Services Tax (GST) on consumers, and the Genting Casino decided to cover the costs instead of charging customers in a well-intentioned effort. "We were wary that a 6% GST would not only serve as an additional tax, but also reduce the gaming budget," Samuel Yin Sao Yang of Maybank said in a statement. The absorbed GST costs are expected to cost between $52 million and $78 million annually at the casino, with the smoking ban clearly hurting the casino's bottom line.

The casino also plans to reopen the theme park at Resorts World Genting, which first closed to upgrade its theme park. The casino will reopen its theme park at the end of 2016, and it will now include 423 guest hotels that are expected to bring more business to the casino, and Sky Plaza, a new VIP casino that is expected to attract high-value gamblers from neighboring countries.  동행복권파워볼