Genting Casino Competition

Posted on 4/9/2022 by admin

Genting Casino Competition 9,3/10 6086 votes

Premium Gaming Genting Casino Genting Club Gaming Guide Responsible Gaming FAQ. Attractions Shopping Dining Nightlife Leisure Awana SkyWay. Shows & Events Bona Cinemas. Skytropolis Indoor Theme Park The VOID BigTop Video Games Park SnowWorld Genting Bowl Vision City. Welcome to GentingBet, where we provide you with a wealth of innovative online slot, jackpots and classic casino table games – including Roulette, Blackjack & Baccarat. At GentingBet we take pride in our partnerships with the industry leading game suppliers to bring you the very best in online casino games. Driving awareness of:. How to gamble responsibly. The tools that are available to help people gamble safely all year round. Sources of more advice and support. Due to the impact of stiff competition in the market and government policy, Genting Group may lose its status as the casino king in the region, taken over by Philippines and Cambodia. JP Morgan pointed out that Genting’s casino business has been leading in Southeast Asia for the past 25 years. Tough Competition Genting, the operator of the Resorts World Sentosa property in Singapore, among other global gaming venues, was previously interested in opening a casino in Osaka, but abandoned.

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GentingGroup, is one of the few Malaysian conglomerate. Genting Berhad isthe parent company to a few subsidiaries engaged in differentindustries. One of the most commonly known is the casino industry.When the word casino is in mind, the only place in Malaysia one couldthink of is Casino de Genting.

Why people only think of Genting?

Thisis because Genting is monopolizing the casino market of the country.

The high barrier of entry into this industry awarded Genting such aprestigious status.

One of the reasons is government directive. Newfirms have a very minimal chance of entry because the government is strict andconservative in awarding another casino licence.

Currently, Genting Malaysia Berhad is holding the sole legal casinolicencing.

Evenif there are no government interventions, another reason that mightdiscourage other firms from entering the market is that other firmsare aware that Genting is a large firm.

They currently holds a marketcapitalization of US $6.8 billion in the leisure and hospitalitybusiness, in which casino is the major business activity. They have amassive 200000 sq ft gaming space at Genting Highlands.

Besides, thenumerous awards they received added the prestige of Genting.

Therefore, if new firms would like to enter this industry; they needa huge initial investment to stay competitive in the market, besidesfinding massive difficulty to match Genting’s branding.

For thesereasons, new firms are also discouraged from entering this industry.

SinceGenting is a monopoly, they are price-setters.

In this case, they canfix the minimum bet for each type of gaming. Even if they increasethe minimum bet, it will not deter people from visiting and gamblingin the casino.
This further exemplifies the characteristics of amonopoly.

Thismonopoly makes it possible for Genting to earn supernormal profits. This is mainly due to the high barriers of entry mentioned earlier.

From the graph, the area in green shows the supernormal profitsearned by monopolistic firms, which in this case indicates Genting.

Thereare two sides to a coin. A monopoly also brings disadvantages such ascomplacency. However, Genting is not in such position. Though beingthe sole firm in the industry, they still strive to improvethemselves. Just recently, Genting revealed they are planning awhopping RM3 billion facelift for their casino resort in GentingHighlands. This is planned in an effort to double their earnings.This massive plan proves that not all monopolists are complacent.

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ShouldGenting continue to monopolize the Malaysian casino market?

Oneof the major setbacks by the monopolization of Genting is thecreation of a black market. Black market causes the shrinkage of theformal economy and causes tax losses for the government. Black marketwill also increase borrowings from loan sharks, fighting and othercrimes.

Inmy opinion, the government should approve more casinos licensing inthe country to combat the black market. This would allow a muchhigher tax collection for our debt-ridden country.

Besides, itcreates job opportunities.

Newfirms will need employees to operate the casinos, hence, reducing theunemployment rate of the country.

A better use of police resource

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The police force can reduce their budget on tackling illegal casinos, since more legal casinos can shrink the black market. Instead, they could focus their resources on more serious crimes such as murder, kidnapping and rape.

With competition, firms are more prone to improve themselves in terms of consumer benefits and welfare in the face of competition. Though a firm may not be able to be a strong competitor for Genting, but they can at least reduce Genting’s market share. Hence, firms will try to innovate to give casino in Malaysia new perspective.

Asa conclusion, Casino de Genting is an example of a monopoly in thecountry. If the barriers of entry remain high, the chances ofmonopolization of Genting in the casino industry will be high.

Listof reference:
http://www.gentingcasino.com/about-us/genting-malaysia/

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Written by:

Michael Yeo (0314238)

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Lim Foong Kien (0315622)