AS a “one-stop centre” (OSC) for gambling, casinos offer a dazzling array of gambling activities under a consolidated and integrated hub.

This is unlike number forecast operators (NFOs)/number forecast totalisators (NFTs) and lottery companies (Magnum, Berjaya Sports Toto, Damacai/Pan Malaysian Pools) that focus on a specific gambling market, and which are regulated under the Racing (Totalisator Board) Act (1961).

There are also outlets such as snooker clubs, which can double as illegal betting havens.

Casinos serve as a gateway to advanced types of gambling like blackjack, roulette, baccarat and craps, which are more “suitable” as part of rest and recreational activities. It is not surprising that casinos are typically a part of resorts or hotels and dubbed legitimate tourism activities.

Earnings generated from casinos can be a lucrative source of revenue for the government, where the “inelasticity” of demand provides an incentive to hike sin tax.

It is highly disconcerting that the Sarawak government is keen on setting up a casino as part of the Borneo Highlands Resort redevelopment, seemingly oblivious to the impact such a plan would have on the local populace.

The Genting Highlands resorts casino story is a success. It is not surprising the Sarawak government wants to replicate it in East Malaysia.

The Malaysian gaming model, with Genting Malaysia monopolising the industry, has worked very well – allowing for a controlled environment to flourish in coexistence with Muslim rules that outlaw gambling.

But constructing a casino that is simply an add-on to a broader resort redevelopment concept will neither be a multiplier nor accelerator to the local economy.

It is simply not feasible, economically speaking, to set up another casino in the country even if it is across the South China Sea. A casino at Borneo Highlands Resort would simply not be a viable alternative site domestically or regionally.

And even though the majority of Sarawakians are non-Muslims, Muslims make up over a third of the Kuching population. 

Promoting the casino industry under Sarawak’s tourism umbrella wouldn’t just be jarring, but financially draining. Resources would have to be stretched to promote the Borneo Highlands Resort casino to generate the expected returns. 

The net present value of the cash flows simply doesn’t justify the investment – given that the present value of the expenditure for redevelopment and construction wouldn’t be met over recouped plus profit by future earnings due to insufficient demand and the size of the expected market. 

Even if the proposal and conceptualisation is for a much more modest casino and concentrated almost exclusively on slot machines, the morality issue far outweighs the economic benefits.

First, what could prevent slot machines from assuming the function of a FBOT?

This would simply transfer the physicality of the centrepiece of gambling attractions, as embodied by the excitement of interpersonal interaction in casino table games, to the virtual plane.

Second, the majority of Sarawak is Christian, and gambling (instead of playing purely for leisure) is forbidden for adherents. 

In this, Christians in Sarawak, and indeed in the rest of the country, should be thankful to Islamist party PAS for stating its avowed opposition to the casino proposal.

Sarawak PAS commissioner Jofri Jaraiee said “the proposed opening of (a casino) should be opposed as it would do more harm than good to the people … If realised, (it) could lead to gambling addiction and the eventual collapse of the family institution and society”.

It’s hoped the Anglican diocese of Kuching, the Catholic archdiocese of Kuching, Association of Churches Sarawak, Sarawak Evangelical Christian Association, Sidang Injil Borneo, and others, along with the Sarawak Islamic Council, join in explicitly stating their opposition, too. 

This brings us to the third point – that the socio-economic development of the local community would hardly be enhanced. The existence of a casino might just further expose them to criminal activities such as prostitution, loan sharking and extortion.

Lastly, it is arguable that having another casino in the country is not in line with the Malaysia Madani agenda. Sarawak’s liberal outlook is better displayed in other ways such as ramping up its culture, adventure, nature, food and festival capabilities, positioning the territory as a leading advocate of a multicultural Malaysia. 

Please don’t set up a casino in Sarawak. – June 14, 2023.

* Jason Loh Seong Wei is head of social, law and human rights at EMIR Research, an independent think tank focused on strategic policy recommendations based on rigorous research.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.