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Transformation costs and VIP slump halve Genting Singapore 1Q26 profit

Viviana Chan
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Transformation costs and VIP slump halve Genting Singapore 1Q26 profit

Genting Singapore‘s first-quarter net profit halved year-on-year, dragged down by elevated transformation costs and a record-low VIP contribution at its Resorts World Sentosa (RWS) integrated resort.

Maybank has flagged that 2026 is shaping up to be ‘another transitional year’ for the operator.

In a research note released following Genting Singapore’s results, analyst Samuel Yin Shao Yang said 1Q26 results came in below expectations once again, with core net profit of SG$69.7 million ($54.9 million) accounting for only 14 percent of Maybank’s full-year forecast. ‘We see no reason to buy GENS until its operations recover more meaningfully,’ Yin wrote, reiterating the brokerage’s cautious stance.

Genting Singapore reported revenue of SG$607.6 million ($478.4 million) for the three months ended March 31, down 3 percent year-on-year but up 3 percent sequentially. Adjusted EBITDA fell 24 percent year-on-year to SG$179.0 million ($140.9 million), while net profit dropped 55 percent to SG$65.2 million ($51.3 million) — a far steeper decline than the top line, reflecting the operating leverage reversal as fixed and transformation-related costs outpaced revenue trends.

Gaming revenue declined 8 percent year-on-year to SG$403.4 million ($317.6 million), though it improved 11 percent quarter-on-quarter. Non-gaming revenue grew 8 percent year-on-year to SG$204.1 million ($160.7 million), supported by higher visitation to Universal Studios Singapore and the new Singapore Oceanarium.

Genting Singapore

VIP volume hits record low

The most striking data point in the quarter was the collapse in VIP rolling volume, which fell 35 percent year-on-year and 24 percent quarter-on-quarter to SG$5.6 billion ($4.4 billion). According to Maybank, this translates into a VIP volume share of only 19 percent — a new structural low, compared with 30 percent in 4Q25.

Management attributed the weakness to poor player quality, an unusually high VIP win rate of 3.81 percent, and ongoing disruptions from asset refurbishment, rather than any tightening of credit policy. Mass market GGR, by contrast, grew 5 percent quarter-on-quarter, lifting its share of total gaming revenue by two percentage points to 26 percent.

Transformation costs to remain elevated

Maybank attributed the earnings shortfall primarily to costs linked to RWS’s ongoing transformation program, including IT infrastructure upgrades, asset refresh, new attractions ramp-up, enterprise integration, and heavier marketing and promotional spend. These costs are expected to remain elevated through 2026.

In its own quarterly overview, Genting Singapore acknowledged that the conflict in the Middle East and broader geopolitical developments have pushed up energy, freight and logistics expenses, while elevated airfares are weighing on travel demand and consumer sentiment.

Waterfront lifestyle development, Resorts World Sentosa, Genting Singapore
Waterfront lifestyle development, Resorts World Sentosa

Recovery pushed further out

New gaming management has begun rolling out a refreshed strategy centred on patron retention, reactivation and acquisition, with renovated gaming areas and an expanded business development team. However, Maybank noted that some key business development hires are only expected to join in the second half of the year, meaning any gaming volume recovery ‘will take time.’

Despite the earnings pressure, Genting Singapore reiterated its commitment to defend the SG$0.04 per share ($0.03) annual dividend, even after the FY25 payout ratio exceeded 100 percent.

Singapore, Tourism

Market share gap with MBS continues to widen

Beyond the near-term cost pressures, Maybank also pointed to a longer-term structural concern: RWS continues to cede gross gaming revenue (GGR) market share to its sole competitor in Singapore, Marina Bay Sands (MBS), operated by Las Vegas Sands.

According to Maybank’s data, RWS’s share of total Singapore GGR has trended steadily lower over the past decade — from more than 80 percent in the first half of 2010, when MBS had just opened, to roughly 25 to 30 percent in recent years. 

The brokerage flagged this erosion as one of the key negative drivers behind the stock’s underperformance, listing it among the principal risks in its valuation framework. With MBS also benefiting from its own ongoing expansion program, the competitive gap could prove difficult to close in the near term, even as RWS rolls out its SG$6.8 billion ($5.4 billion) RWS 2.0 expansion.

MGM’s Kenneth Feng voices concern over KOL gaming promotion in China

Viviana Chan
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MGM’s Kenneth Feng voices concern over KOL gaming promotion in China

MGM China President and Executive Director Kenneth Feng has acknowledged “a little bit of concern” over recent Chinese social media reports suggesting some key opinion leaders (KOLs) may have crossed the line into promoting gaming, in a candid exchange at the G2E Asia “Asia Gaming Talk: Marketplaces in Motion” panel.

The issue points to a broader structural shift in Macau’s gaming industry. With the junket system effectively dismantled, the traditional buffer between concessionaires and gaming customers has narrowed significantly. Moderator Michael Grimes noted that some KOLs have reportedly been operating as “pseudo-junkets” — introducing players to casinos and capitalising on the referrals — a practice that has triggered pushback in mainland Chinese media.

Feng said MGM follows local Macau law and applicable laws in every jurisdiction where it operates, adding that Beijing has the tools to act when needed. “As long as it’s regarding China’s social stability, China’s central government definitely has a lot of new technologies, new ways to make sure it goes the way that they want,” he said.

He framed the current environment as a maturing of the system rather than a crackdown. The VIP-driven model that defined Macau a decade ago, he argued, reflected an earlier phase of China’s exponential growth. “The country is getting more and more mature, even the governance system,” Feng said, noting that President Xi Jinping has taken action across multiple sectors since 2013, not only on Macau VIP gaming.

Feng pointed to Xi’s December visit to Macau, where the President publicly stated for the first time that he wanted Macau’s gaming industry to grow “healthily and legally.” At the same time, Beijing has tasked the six concessionaires with economic diversification — a mandate that has driven non-gaming investment over the past three to four years, with mixed results.

The sensitivity extends beyond Macau. Walter Power, CEO of The Grand Ho Tram in Vietnam, said his property exercises particular caution when it comes to mainland-facing marketing. “Marketing in China is very sensitive. We want to protect our team and comply with what the Chinese laws are, so we go by that,” Power said.

Feng’s closing message for operators navigating the new environment was direct: “Follow the law, do what we can do, and don’t touch the things that we shouldn’t touch.”

MGM’s Kenneth Feng reframes Macau’s suite boom as a gaming-yield play

Viviana Chan
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0
MGM’s Kenneth Feng reframes Macau’s suite boom as a gaming-yield play

The wave of room-to-suite conversions sweeping Macau’s integrated resorts is less about hospitality and more about gaming yield, according to MGM China President and Executive Director Kenneth Feng, who shared the underlying economics at the G2E Asia “Asia Gaming Talk: Marketplaces in Motion” panel.

“The yield on a two-bay suite is about five times compared to a regular room,” Feng said. “Why? Because the customers who utilise these rooms are gaming customers. We do calculations on who gets the suite based on their performance.”

MGM's Kenneth Feng reframes Macau's suite boom as a gaming-yield play

A two-bay suite — a unit built from the combined footprint of two standard rooms — illustrates the underlying maths driving the conversion trend. Operators give up one rentable room, but the remaining suite generates roughly five times the yield of a standard room, effectively doubling revenue per equivalent floor area while shifting the inventory mix towards premium mass players.

MGM has been among the most active in pursuing this strategy. The operator completed the conversion of standard rooms at MGM Cotai into 63 new suites in the first quarter of 2026, and has flagged plans to renovate around 100 more suites at MGM Macau. The peninsula property has also recently added 28 villa-style units known as “Alpha Villas”.

The five-fold yield differential helps explain why concessionaires across Macau have been reconfiguring inventory, even at the cost of total room count. But Feng stressed that the strategy is not simply about adding more suites — it is about designing the right kind. “These are not typical business hotel suites; they are designed for the premium mass market,” he said. “We want to ensure the customer’s experience flows — from check-in to the room to the casino floor. Everything serves the purpose of having them play more.”

Genting Singapore

The suite question sits at the heart of a broader pivot. Macau’s gaming market is increasingly defined by the mass segment, and particularly premium mass, a customer base whose preferences are evolving rapidly. Feng said MGM has spent the past four to six years building what he described as a customer-centric operation that extends from senior management to frontline staff. He personally speaks with frontline employees and gaming customers on a regular basis, he added, allowing the company to make decisions quickly when tastes shift.

Technology and data analytics play a role, but Feng framed customer understanding as a broader ecosystem. “We understand the region, not only this industry. We even know what industries our customers work in and how they make money, so we can better issue credit,” he said.

The strategy appears to be flowing through to results. MGM China has delivered EBITDA margins in the mid-to-high 20s over the past several years — a metric Feng argued is a more meaningful gauge of operational effectiveness than the player reinvestment rate calculations that often dominate analyst commentary. The operator has been the standout performer of Macau’s post-pandemic recovery, lifting its market share from below 10 percent before COVID to 18 percent in March 2026 — the highest among the six concessionaires.

“Typically, people do quick calculations on our earnings, but that doesn’t reflect the whole picture,” he said. “It’s not just a reinvestment game; it depends on your products, services, and whether you follow the trends.”

Asked whether the conversion of smaller hotel rooms into larger suites reflected a tacit understanding with the authorities — operators supporting Macau’s non-gaming diversification mandate in exchange for room to premiumise the gaming floor — Feng described the dynamic as a balancing act. “As long as we continue to do our non-gaming efforts, all six of us, meanwhile, in order to do more non-gaming efforts, of course, we need to be more profitable,” he said. “It’s becoming like a balance game. I think everyone understands that.”

Bloomberry, Solaire Resorts & Casino

Solaire’s balancing act: VIP vs premium mass

The premium mass shift is not confined to Macau. In Manila, Solaire President and COO Greg Hawkins said his team is actively re-evaluating how to allocate floor space between VIP and premium mass, with the VIP segment having come under pressure in the Philippines in recent years. “We are looking at the optimal use of square footage — should we allocate more to VIP or to premium mass?” Hawkins said. “We’re adapting both properties to find that mix.”

Hawkins added that Solaire’s premium positioning — including villas for high-end players and an emphasis on service — has underpinned earnings growth over the past decade, but warned that innovation remains essential. “You must keep thinking of the most innovative ways to stay ahead of an increasingly competitive pack.”

Pragmatic Play secures LatAm partnership with Black Label

AGBrief Editorial
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Pragmatic Play secures LatAm partnership with Black Label

Pragmatic Play has strengthened its reach in the regulated Latin American market through a multi-product deal with platform provider Black Label.

The partnership will see Pragmatic Play’s premium portfolio, including Slots, Live Casino, and Virtual Sports, integrated into the Black Label platform, enabling regulated operators across LatAm to seamlessly access the supplier’s content.

Pragmatic Play titles, including multi-award-winning slots such as Gates of Olympus and Sugar Rush, as well as popular crash games like High Flyer and Spaceman, are now available to Black Label’s partners in the region.

Black Label, a 360‑degree online gaming experience, serves as an end‑to‑end integration platform for launching or scaling online casinos. Built with a deep understanding of Latin American players and offered in Spanish, it provides locally aligned solutions for one of the fastest‑growing regulated markets in the industry.

Victor Arias, VP of Latin America at ARRISE
Victor Arias

Victor Arias, VP of Latin America at ARRISE, a global iGaming software and services leader and a key partner to Pragmatic Play, said: “Latin America remains one of the most dynamic and fast-growing regions in the industry, and partnering with Black Label allows the company to further boost its reach across the market.

“Combining Pragmatic Play’s award‑winning content with Black Label’s locally aligned platform to support operators and players across the region is another positive step, and one that further cements our status in Latin America.”

Roberto González, general manager at Black Label, added: “Pragmatic Play is a globally respected supplier, and integrating its multi-product portfolio is a major milestone for Black Label. Our platform is built specifically for the needs of Latin American operators, and adding Pragmatic’s high‑performing content further strengthens the value we deliver to our partners.”

1xBet ambassador Carlos Prates defeats Jack Della Maddalena at UFC Perth 

AGBrief Editorial
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1xBet ambassador Carlos Prates defeats Jack Della Maddalena at UFC Perth 

1xBet brand ambassador, Brazilian fighter Carlos Prates, earned a convincing victory over Jack Della Maddalena in the main event of the UFC tournament in Perth. The bout ended in a technical knockout in the third round at 3:17, securing Prates a place among the top contenders for the UFC welterweight title. 

Dominance from the opening minute 

Prates fought on his opponent’s home turf – both geographically and competitively. Perth is Della Maddalena’s hometown, and the crowd at RAC Arena was firmly behind the local fighter. Still, that did not stop the Brazilian, nicknamed the Nightmare, from taking control of the bout from the very beginning. In the third round, Prates knocked Della Maddalena to the canvas twice before the referee stopped the contest. 

After the victory, Prates stated that he deserves to be the next UFC title challenger: “Nobody beat two former champs in a really good way. They never lost by knockout, and then I come there and make it look easy. All respect to them, they are tough. But against Leon Edwards, against Della Maddalena, I made it look easy, and I’m next.”

Prates’ victory as an example of effective ambassadorship in combat sports 

For 1xBet, this victory is more than just a sporting achievement. It is a perfect illustration of how a presence in MMA remains one of the most effective brand-promotion tools in the iGaming industry.

From a B2B communications perspective, sports news stories like this become a valuable asset for the brand’s entire partner network. They create additional marketing value that participants in the 1xPartners affiliate program can leverage. It leads to increased traffic and more opportunities to attract new players, ultimately boosting program participants’ potential profits.

For affiliates and marketing partners, such events significantly simplify communication with target audiences. High brand awareness, reinforced by the real sporting achievements of its ambassadors, makes advertising creatives more effective and promotional offers more convincing. 

B2B angle: Opportunities for partners 

For affiliates and operators working with 1xPartners, events like this generate an additional traffic boost. Fights involving a brand ambassador are traditionally accompanied by increased platform activity: new registrations, higher betting volumes, and organic discussion across social media. For partners, it creates high-potential conversion windows. 

1xPartners provides affiliates with tools to monetize this traffic through transparent terms, flexible collaboration models, and the possibility to incorporate current sporting events into their own campaigns.

Prates has new fights coming up that are expected to attract major public attention. Seize the moment, join 1xPartners, and unlock new growth opportunities!

Daily Asia Gaming eBrief: Asian gaming enters slower-growth phase

AGBrief Editorial
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Daily Asia Gaming eBrief: Asian gaming enters slower-growth phase
Good morning. The tide is still coming in — just not as fast. Morgan Stanley says the Asian gaming boom is entering maturity, with Singapore emerging as the region’s standout while Macau struggles with rising costs and softer returns. In Macau, analysts agree revenues are recovering but warn operators are spending more and more just to maintain growth. Sands China believes conventions and entertainment could reshape the city’s future. And in Vietnam, The Grand Ho Tram sees airports, highways, and local gaming as its next growth engine.

What you need to know

On the radar

AGB Intelligence

REGIONAL

Asian Gaming, Macau, cotai-strip, Gaming revenue, Macau GGR, gaming operators, gaming industry, Macau dasino operators,

Slower growth reshapes Asian gaming

Singapore has emerged as the strongest performer in the Asian gaming landscape as the broader regional market enters a slower-growth phase, Morgan Stanley’s Praveen Choudhary said during G2E Asia 2026. Macau is still expanding but faces growing profitability pressure from higher costs and fierce premium-mass competition. The Philippines remains challenged by weak land-based demand, Japan’s IR rollout may take longer than expected, and the UAE is increasingly viewed as a major long-term opportunity.

Industry Updates

Corporate Spotlight

How Crypto Adoption in Asia is Changing iGaming Payments

Yevhen Krazhan, CSO at GR8 Tech, explores how surging crypto adoption across Asia is revolutionizing iGaming payments, stating: “When I look at what’s changing fastest in Asia, it’s payment behavior,” as wallets, stablecoins, and seamless cross-border transfers become deeply ingrained in player habits.

INTELLIGENCE | ASEAN | AWARDS | CAREERS | EVENTS

Taiwan justice bureau official suspended over alleged links to online gambling software

Frank Schuengel
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Taiwan justice bureau official suspended over alleged links to online gambling software

A senior official at Taiwan’s Ministry of Justice Investigation Bureau (MJIB) has been suspended amid allegations that he helped develop software code for online gambling systems, according to local media reports.

The case centers on an ongoing investigation involving a police information technology officer in Taoyuan City, identified by the surname Hsu, who allegedly worked with two engineers to establish a shell company that secured government technology procurement contracts from the police department. Taiwanese prosecutors launched an investigation into the matter on April 17th, conducting searches at the homes of the individuals involved and seizing evidence linked to the case.

Authorities later discovered that an MJIB official surnamed Hung – previously employed as a software engineer before entering government service – was allegedly connected to the operation and may have assisted in developing online gambling-related software.

The MJIB, Taiwan’s primary investigative agency under the Ministry of Justice, said it has suspended Hung and opened an internal investigation while cooperating with prosecutors. The bureau added that it plans to convene a temporary Merit Evaluation Committee meeting and warned that Hung would face severe disciplinary action if the allegations are confirmed.

In a statement, the MJIB said its personnel are expected to uphold high ethical standards given their role in investigating criminal activity, adding that any violations of the law would be thoroughly examined. Local reports said Hung had been stationed at the MJIB’s Taoyuan office and had recently been selected for an overseas posting as a legal secretary in the Middle East.

Indonesia braces for World Cup gambling surge as police warn of enforcement test

Frank Schuengel
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Indonesia braces for World Cup gambling surge as police warn of enforcement test

Indonesia’s National Police have put the public on notice that the 2026 FIFA World Cup will trigger a surge in illegal online gambling, as authorities brace for what they describe as one of the most challenging enforcement periods in recent memory.

Brigadier General Trunoyudo Wisnu Andiko, head of the Public Information Bureau at the National Police’s public relations division, issued the warning at a press conference held at the TVRI building in Jakarta on 7 May, the same venue where the state broadcaster was formalizing its role as official rights holder for the tournament in Indonesia. The timing was deliberate. TVRI’s coverage will reach tens of millions of viewers, and Polri is treating the broadcast footprint as both an asset and a vulnerability.

“We must anticipate the rise of football gambling,” Trunoyudo said in a written statement issued on the 8th of May. “We cannot allow this momentum to be exploited for unlawful activities that could result in public loss.”

All forms of gambling are illegal in Indonesia under Articles 303 and 303bis of the Penal Code, with penalties extending to five years imprisonment and fines of up to $66,000 for punters, and up to ten years and $660,000 for operators. The country is home to the world’s largest Muslim-majority population, and enforcement has been consistent and, at times, aggressive. Over the past eighteen months alone, authorities have blocked more than a million gambling-related websites and frozen thousands of bank accounts. The Financial Services Authority, OJK, confirmed in March that it had instructed commercial banks to block 33,252 accounts following automated detection of gambling-related transactions. Yet the grey market persists, and football has always been its busiest season.

Soccer is by far the most popular sport in Indonesia, and offshore betting platforms – many of them operating through VPNs, cryptocurrency rails and local e-wallets – have long treated World Cup years as peak acquisition windows. Polri has acknowledged the pattern explicitly. Historical data consistently shows betting volumes spike around major international tournaments, and around games involving the Indonesian national team, which, for the first time, has qualified for the World Cup, adding a layer of national fervor to an already charged environment.

Genting Singapore

The scale of the underlying market is not in dispute. A study released earlier this year by a US-based payments provider found that 19 percent of people with an interest in the 2026 World Cup intended to place their first-ever online bet during the tournament, a figure that, applied to Indonesia’s enormous and football-obsessed population, points to a significant acquisition opportunity for offshore operators willing to absorb the legal risk. Gambling turnover linked to online platforms reached an estimated 280 trillion rupiah (approximately $16 billion) last year, with an estimated 12 million Indonesians participating in illegal online gambling activity.

The enforcement environment has sharpened considerably in the lead-up to the tournament. On the 9th of May, just days after Trunoyudo’s warning, Indonesian police arrested 321 foreign nationals, predominantly Vietnamese, with significant contingents from China, Myanmar, Laos and Thailand, at a commercial building near Jakarta’s Chinatown. Authorities said the group had been operating at least 75 illegal betting websites, targeting players outside Indonesia, for approximately two months. Of those detained, 275 were formally named as suspects on gambling and money laundering charges carrying a maximum sentence of nine years. Similar operations had previously been dismantled in Surabaya, Bali and Batam, with investigators noting a discernible migration of transnational gambling syndicates from Cambodia and Myanmar, where prior crackdowns had raised operational costs, toward Indonesia.

Communications and Digital Minister Meutya Hafid took a harder line still, pledging zero tolerance for operators targeting minors and committing further government resources to digital monitoring and prosecution. “Criminals now use digital solutions and advanced technology,” she said. “We must massively strengthen the digital services we use to prosecute and monitor them.” Polri is setting up a dedicated complaint channel in cooperation with TVRI, supplementing the existing 110 hotline, and has also warned the public against fraudulent watch-party ticket schemes, a recurring side-racket that emerges around major sporting events.

The crackdown cycle Indonesia finds itself in is not new, but the 2026 World Cup represents a stress test of unusual intensity. The combination of Indonesia’s first-ever World Cup qualification, a 48-team tournament generating more matches and more betting markets than any previous edition, and a government with demonstrated appetite for enforcement creates conditions that offshore operators and their players will need to navigate carefully.

Scientific Games appoints Ray Anderson as interim CFO amid leadership transition

AGBrief Editorial
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Scientific Games appoints Ray Anderson as interim CFO amid leadership transition

Scientific Games has announced the appointment of Ray Anderson as interim Chief Financial Officer, effective May 4, as the company begins the search for a permanent CFO.

The appointment follows the departure of current CFO Nick Negro, who will leave on May 15 after three successful years leading the company through sustained growth, as he relocates to Chicago for a new opportunity closer to family.

“Nick has been a strong member of our leadership team and an advocate for the potential of Scientific Games,” said Pat McHugh, Chief Executive Officer for Scientific Games. “During his time with the company, he significantly strengthened our financial and procurement organizations and helped position Scientific Games for continued growth. We thank Nick for his contributions and wish him all the best.”

Anderson is a seasoned finance leader and CPA with more than 30 years of global experience, including senior leadership roles at KPMG across the U.S., Europe and Asia. Most recently, he served as a Global Lead Partner, advising Fortune 500 companies on audit, capital markets, and regulatory strategy, and working closely with boards and executive teams. Immediately prior to this role, he led KPMG’s Pacific Southwest audit practice for six years.

“Ray is a highly respected finance leader with extensive global experience advising large, complex organizations,” said McHugh. “We are confident in his ability to support the business and our Finance organization during this transition.”

Serving 150 lotteries in 50 countries, Scientific Games is the world’s largest lottery games company, fastest growing lottery systems provider and a leading provider of digital lottery solutions.


Philippines blocks gambling sites on government public Wi-Fi network

Frank Schuengel
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0
Philippines blocks gambling sites on government public Wi-Fi network

The Philippines Department of Information and Communications Technology (DICT) has confirmed that pornography and online gambling websites are blocked on all connections provided through its expanding free public Wi-Fi program, as the government seeks to promote safer internet access for students and remote communities.

Speaking during the launch of new connectivity projects in Zamboanga del Sur province in the southern Philippines, DICT officials said the restrictions are part of broader safeguards built into the country’s publicly funded internet infrastructure, particularly at schools and educational facilities.

DICT Assistant Secretary June Vincent Manuel-Gaudan said the agency uses filtering technologies to prevent users from accessing “pornographic and gambling sites” through government-provided Wi-Fi services. The initiative forms part of the Philippines’ nationwide Free Wi-Fi for All program, which aims to expand internet access to underserved areas, including geographically isolated and disadvantaged communities.

Officials stressed that the program is not solely focused on connectivity, but also on responsible internet use and cybersecurity awareness. DICT said it is working closely with the Department of Education (DepEd) to encourage digital literacy and responsible online behavior among students, while also providing cybersecurity training for teachers, parents and local communities.

Regional Director Cheryl Ortega said the agency provides “complementary content, applications and orientation on the proper use” of internet services alongside infrastructure deployment. The department acknowledged that some users may still attempt to bypass restrictions through tools such as virtual private networks (VPNs), but said it continues to strengthen monitoring and filtering systems.

DICT also disclosed that its Cybersecurity Bureau blocks thousands of cyberattack attempts each day and assists other government agencies with data protection and online security measures. The latest rollout saw the launch of 324 free Wi-Fi hotspots across 108 schools in Zamboanga del Sur, many of them located in remote areas with limited internet connectivity.

The Philippines has in recent years taken a more active approach to regulating online content and digital services, including tighter scrutiny of illegal online gambling operations and cybercrime activities.

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