Malaysian gambling establishments are potentially pushing the boundaries of Indonesia's gambling regulations.
Unleashing the Casino Scene Across Asia: A Mixed Bag of Opportunities and Challenges
Asia's casino industry is abuzz with excitement, with destinations like Macau (dubbed as the "Asian Las Vegas") setting the pace. Singapore and Thailand also make a splash with their sophisticated gambling experiences, while Japan is preparing to seize opportunities in the remarkable market of integrated resorts (IRs). These gaming havens are not just mushrooming; they're turning into tourism and entertainment sector heavyweights, attracting visitors from across the globe.
Tourism Amid Tensions
The continent's economic growth potential is promising, yet it encounters significant regulatory hurdles and sporadic diplomatic spats. Malaysia provides a telling example, encouraging Indonesian tourists to explore cultural and recreational activities beyond gambling. Dato' Yeoh Soon Hin, Tourism Malaysia's Vice President, clarified that Malaysia is not promoting itself as a gaming destination for Indonesians, restricting such activities to specific locations, like Genting Highlands, where Genting Casino and SkyCasino reside. He acknowledged that Indonesian tourists interested in a casino experience at Genting Highlands cannot be stopped.
Neighborly Visits
These statements follow growing discussions on cross-border gambling tourism. Indonesia and Malaysia not only share geographical borders but also have relaxed travel rules, with Indonesian citizens not needing a visa for short-term visits to Malaysia. In 2023, Malaysia welcomed approximately 3.17 million Indonesian tourists, making it the second-largest source of international visitors, following only Singapore. By 2024, this figure escalated to 3.65 million, and this growth was mirrored in casino earnings.
In the same year, Resorts World Genting (RWG) recorded an annual revenue of MYR 6.3 billion (€1.3 billion). RWG significantly contributed to Genting Malaysia's total revenue, which soared to MYR 10.91 billion (€2.3 billion) in 2024.
Gambling: A Taboo in Indonesia
However, an essential truth remains unacknowledged: gambling is outlawed in Indonesia due to religious, cultural, and social reasons. Indonesia's legislation mirrors religious teachings that consider gambling haram (prohibited). The Indonesian Ulema Council and government have persistently criticized all forms of gambling, including online platforms.
In 2024, the Minister of Communications, Budi Arie Setiadi, deemed online gambling as an activity that "sucks the lifeblood out of people," reflecting the perception that this practice poses a threat to social and economic stability. Yet, despite the ban, the illegal gambling market continues to flourish, with approximately 8.8 million Indonesians participating in online betting in 2024, even among children below the age of 10. Online gambling transactions totaled $20 billion (€17.6 billion) in 2023.
In response, Indonesia increased efforts to suppress online gambling, blocking over 3.5 million related contents in 2024 alone and launching digital literacy campaigns to caution the public about the risks of this practice. Malaysia is contemplating stricter regulatory measures, but Indonesia's relentless stance on the issue pushes many citizens to explore alternatives in neighboring countries or offshore platforms. Containing the spread of illegal gambling remains a formidable challenge, with effective regional cooperation or domestic regulation improvement being the key to success.
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[1] AsianGaming, (2023) Malaysian Tourism Board Leader: Not Promoting Malaysian Casinos to Indonesian tourists, AsianGaming, [online] available at: https://www.asgam.com/malaysian-tourism-board-leader-not-promoting-malaysian-casinos-to-indonesian-tourists/
[2] Bernama, (2023) Malaysia: Over 3.17 Million Indonesian Tourists Visited in 2023, Bernama, [online] available at: https://www.bernama.com/en/business/news.php?id=1989971
[3] Straits Times, (2023) RWG Revenue Surpasses MYR 6 billion, Straits Times, [online] available at: https://www.straitstimes.com/business/companies-markets/rwgs-revenue-surpasses-myr-6-billion-in-q3
[4] Reuters, (2023) Indonesia Bans Online Gambling, Targets Offshore Operators, Reuters, [online] available at: https://www.reuters.com/article/us-indonesia-internet/indonesia-bans-online-gambling-targets-offshore-operators-idUSKBN2D204E
- Despite Indonesia's prohibition on gambling, the number of Indonesian tourists visiting Malaysia's casinos at Genting Highlands has significantly increased, contributing to the country's casino earnings.
- As Malaysia encourages Indonesian tourists to explore cultural and recreational activities beyond gambling, the potential for developing casino resorts in Malaysia remains untapped, redefining the Asian casino scene.
- Against the backdrop of growing cross-border gambling tourism, the weather in Malaysia serves as an added advantage for casino resorts, attracting visitors year-round and providing a conducive environment to enjoy the casino experiences offered at Malaysian resorts.
