Genting frontrunner in clinching New York City casino licence
PETALING JAYA: While the potential delays due to local approvals that may push the awarding of new casino licences in New York City to as late as 2025, Genting Malaysia Bhd is expected to remain a leading contender.
Operating Malaysia’s sole casino since 1969, the company is now aiming to secure one of three highly sought-after casino licences in New York City to expand its successful Resorts World casino.
Rakuten Trade head of equity sales and seasoned analyst Vincent Lau emphasises Genting’s strong position is a plus in its bid which is highlighted by the group’s commitment to provide Us$1bil in tax annually to the state.
“Its is committed to paying a significant amount in taxes and has a solid track record. This puts it at the forefront of the race,” he tells Starbizweek.
“It’s a strategic move and a major advantage for it, given its longstanding presence in the area.”
However, an analyst at a local brokerage expresses concerns about the potential legislative hurdles that could delay the licence awards and the broader implications of converting the parkland into commercial space.
“The legislative process has been pushed back, and with more competitors entering the fray, it’s hard to predict when this issue will be resolved,” he notes, pointing to a possible decision delay until late 2025.
Given the bigger competition pool, the analyst stresses the heightened challenges this brings.
“It’s just too early to tell.
“The legislative process has been knocked down the road, and it seems we’re even further from a resolution now. It’s very premature to assume any outcomes at this point,” he adds.
Meanwhile, when asked about the financial implications, Lau expresses confidence, directly tying it to Genting’s commitment to pay Us$1bil in taxes.
“Such a substantial tax commitment is a strong signal of its long-term investment and confidence in the project’s profitability,” Lau explaines.
He notes that although the initial period might be financially challenging, the longterm benefits are clear.
“Over time, we expect the investment to not only cover this significant tax outlay but to yield considerable returns as operations expand and mature,” he adds.
Bloomberg reported that last year, Genting contributed over Us$600mil in taxes and levies. New York’s new casino licences have attracted many major players such as Las Vegas Sands Corp, Wynn Resorts Ltd and financier Steve Cohen, who has teamed up with Hard Rock International.
Genting along with MGM Resorts International, which operates Empire City Casino in Yonkers, are viewed as frontrunners due to their existing facilities.
The licences would allow the companies to add games like blackjack and roulette.
Under New York’s casino law, winners of the licences will pay a one-time Us$500mil fee to the state.
Bidders are expected to compete based in part on how much they are willing to pay in taxes.
Citing the American Gaming Association, Bloomberg notes that New York has some of the highest casino tax rates in the country, with an effective rate of 55% on electronic gaming devices.
Comparatively, casinos in Nevada – where Genting has a Las Vegas resort – pay 6.8%.