KUALA LUMPUR (Aug 20): A complaint by the Nevada Gaming Control Board against Resorts World Las Vegas could jeopardise Genting Bhd’s (KL:GENTING) bid for a downstate New York full casino licence, CIMB Securities warned.
Existing slots business of Resorts World New York City could suffer if other casino operators successfully secure the licences while it does not, the research house flagged in a note. Genting operates the New York operations through its subsidiary Genting Malaysia Bhd (KL:GENM).
“We think another risk is that a negative review by the commission could jeopardise Resorts World New York City’s bid” for the licences, open for applications in mid-2025, CIMB said. The final award could come between the end of 2025 and first quarter of 2026.
The comment comes after the Nevada gaming regulator filed a slew of complaints that included allegations that it had failed to ban criminals from its Resorts World Las Vegas to the Nevada Gaming Commission.
Genting said last week that it has been “actively working to communicate” with the Nevada Gaming Control Board and looks forward to resolving the issues raised by the gaming board and “continuing to ensure that business practices at Resorts World Las Vegas meet all regulatory and legal requirements”.
CIMB Securities noted that there are allegedly some 300 separate violations, which may result in a fine of up to US$75 million (RM332 million) as well as potential suspension or revocation of Resorts World Las Vegas’s non-restricted gaming licence if the commission finds that state laws have been broken.
“Some industry experts say that this is rare and the commission is unlikely to go that far, due to the uncertain long-term impact from taking such a drastic measure,” the research house said.
For now, CIMB has a target price of RM6.90 for Genting based on a sum-of-the-parts valuation, of which Resort World Las Vegas accounts for zero equity value.
However, Resort World New York City makes up 80 sen of Genting Malaysia’s target price of RM3.60 and 28 sen of Genting’s target price given its 49.3% stake in Genting Malaysia.