Genting Malaysia may be exposed to new opportunities in New York and Florida
KUCHING: There may be new opportunities in New York and Florida for Genting Malaysia Bhd (Genting Malaysia) to participate in, depending on the outcome of the S1490 bill, analysts opine.
According to Affin Hwang Investment Bank Bhd (Affin Hwang Capital), in New York, Genting Malaysia’s Resort World Casino New York ( RWNY) could play a role in the US$ 10 billion sports betting market, depending on the outcome of S1490.
The Senate Bill S1490 authorises gambling on professional sporting events and athletic events sponsored by universities on colleges, as per The New York State Senate website.
“Most states across the nation have started passing new legislation to introduce sports betting in their states, New York is one of them. However, the current law in New York only allows the four casinos to operate a sport book, and bets can only be placed inside the casino betting lounge,” the research firm said.
“Although the state of New York has ruled out the possibility of allowing other gaming facilities within the state apart from the four casinos to operate sports betting, there is a bill ( S1490) on the state legislation floor which will allow other gaming facilities to accept bets on mobile sites.
“The new act would allow RWNY which has around 10 million visitation a year to be a mobile site for sports betting. A decision would likely be made before June 19, the deadline for legislature’s spring season.”
Affin Hwang Capital highlighted that casino operators have also started to lobby for the state to end the seven-year moratorium, which limits casino expansion (from the four upstate casinos) until 2023.
The research firm recapped that voters had previously agreed to seven licenses, but the remaining three licenses will only be issued after the moratorium expires.
It noted that the push was due to the underperformance of the current casinos.
“We believe if RWNY is converted from video-lottery terminal (VLT) to a full- fledge casino, it would significantly improve Genting Malaysia profitability.
“However, the New York Governor Andrew Cuomo is less passionate about the idea.”
As for Florida, Affin Hwang Capital highlighted that the state is negotiating with the Seminole Tribe on their “exclusive” rights to offer banked card games in the state, which contributed US$ 350 million per year to the state.
The state could expand gaming if the negotiation falls through to fill the budget gap, potentially benefiting Genting Malaysia, in the research firm’s view.
“During the latest state budget, lawmakers have excluded the US$ 350 million contribution given to the Seminole Tribe since 2010 under their ‘compact’ agreements.
“The agreement gave the tribe ‘exclusive’ rights to offer banked card games in the state. The governor also mentioned that he would veto any deal that he deems unfair.
“The state could in theory ‘ liberalise’ gaming in the state to close the financial gap, if needed.”
Affin Hwang Capital observed that the biggest hurdle for gaming expansion in Florida, is the compact agreement that the state has with the Seminole Tribe, as it grants the tribe exclusivity for banked card games.