Malaysian Casino Companies Bet Overseas, Luster Being The Latest
Given the limited options for average Malaysians and the strict legal code, many gaming firms are making a beeline for overseas market and trying to cash in on the moolah easily available in the overseas market. In this race to make some quick bucks on easy investment some new players are also making a foray, even firms who had nothing to do with gaming till date but enjoy goodwill on the basis of the core business that they are involved with in the home ground, that which accounts for most of their profit profile.
One such player is Luster Industries. Predominantly known as a plastic manufacturer, they have decided to enter this lucrative online gaming scenario but not in Malaysia but Cambodia. While sceptics might not be very convinced, Luster is betting big on gambling. They have envisaged a profit after tax target of $3 million in 3 years after kicking off operations.
As Malaysian law continue to be detrimental for entry of new players, Luster is among the growing breed of new age companies who want to invest their time and money in this now emerging and attractive industry and gamble on the prospect of high profit margins.
Luster’s move is extremely well timed in the context that some global consultancy firms like PricewaterhouseCoopers have predicted that the prospects and growth opportunities for online gaming across Asia is pointing north. According to their estimates, gaming in the A-Pac region could even double and reach as high as $80 billion by the end of this year compared to where they stood in 2010 around $34 billion.
These figures don’t just bear testimony to the growing popularity of casinos and betting as a leisure across the region but also a higher degree of purchasing power and risk appetite that motivates users to go for these options.
The scenario of online gaming Malaysia is a complex one. While no new licences have been issued since 1960s, the unregulated options keep mushrooming and given the easy internet access, perhaps opportunities for these Malaysian linked companies in countries with more broad-based gambling regulation is significantly higher.