(AsiaGameHub) –   Genting Malaysia has joined other gaming operators in warning about the potential fallout from the ongoing conflict in the Middle East.

The operator informed shareholders that it is preparing for the consequences of persistent geopolitical friction and wider macroeconomic instability during a sluggish start to 2026, with inflation driven by the regional crisis squeezing consumer spending.

Even though it recently launched the inaugural regulated commercial casino in New York, the company has expressed reservations regarding its global expansion outlook.

In its Q1 report, the company stated: “Global economic momentum is projected to decelerate due to persistent geopolitical friction in the Middle East and wider macroeconomic instability. International tourism is anticipated to face headwinds from declining outbound travel and rising travel expenses. In this environment, the regional gaming sector may encounter a more difficult operating landscape. The Group remains wary of the short-term outlook for the leisure and hospitality sector.”

Sharp decline in profits

Genting Malaysia posted a 10% year-on-year rise in revenue, reaching RM2.87bn (£538.5m). Conversely, its pre-tax profit plummeted by 77% compared to the previous year, dropping to RM43.1m (£8m).

A portion of this downturn was linked to the expenses incurred while converting Resorts World New York into a full-scale commercial casino, following the acquisition of its license in December.

Due to these headwinds, Genting Malaysia suffered a net loss of RM25.2m (£4.73m), a sharp reversal from the RM52m (£9.75m) net profit recorded in the first quarter of 2025.

More positively, the operator highlighted the strong performance of its Genting Casino Stratford in London, which helped offset the negative effects of geopolitical instability. This contributed to an 11% year-on-year revenue increase in its UK and Egypt division, reaching RM460.7m (£86.6m) during the first quarter of 2026.

Revenue at the group’s primary resort in Malaysia also saw a modest 3% year-on-year increase to RM1.67bn (£313.4m), bolstered by gains in its gaming division.

Nevertheless, Genting emphasized that it will prioritize operational efficiency and yield optimization in its home market to navigate the anticipated challenges.

The operator remarked: “The domestic outlook in Malaysia is projected to be conservative, with growth potentially slowing down as inflation, geopolitical risks, and global headwinds impact the wider economy.”

Reasons for hope?

Despite these hurdles, Genting Malaysia expressed confidence in the long-term future of the international leisure and hospitality market.

Its outlook is further strengthened by its temporary monopoly in the New York casino sector, given that rival developments from Hard Rock Entertainment and Bally’s are delayed until at least 2030.

Although the casino commenced operations on April 28, Genting Malaysia is still introducing new features and services. The full development of the site at the Aqueduct Racetrack is scheduled for completion in 2029.

During its initial two weeks of business, the venue brought in gross gaming revenues of $27.2m (£20.3m) and $26.7m (£19.9m).