Genting Bullish on New York, RWNY Casino License Prospects

Posted on: June 13, 2024, 03:59h. 

Last updated on: June 13, 2024, 03:59h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

At its annual meeting this week, Genting Malaysia Bhd sound an optimistic tone on its operations in New York, including the prospects for Resorts World New York landing one of the three downstate casino licenses the state has yet to award.

Selwyn Balkissoon
Resorts World New York in Queens. Operator Genting is bullish on its New York footprint. (Image: NYT)

In addition to the slots-only Resorts World New York in Queens, the Malaysian conglomerate controls Empire Resorts. That entity, which has had its bouts with financial woes, Resorts World Catskills, Monticello Raceway, sports betting operations in New York, and Resorts World Hudson Valley. It doesn’t control the Queens property.

While Empire Resorts flirted with bankruptcy protection in 2019, Genting believes it’s established footprint in New York State could help Resorts World New York in its quest for a downstate casino license and told investors as much at the annual meeting.

It’s not clear if regulators in the fourth-largest state will see things that way, but Genting has taken steps to financially bolster its ailing venues in the Northern part of New York. Those commitments could be taken into account when regulators evaluate bids for the downstate permits.

Genting in Strong Position for New York Casino License

No official declarations have been made to this effect, but since the onset of the New York City-area casino process, consensus wisdom has held that Resort World New York and MGM Resorts International’s Empire City Casino in Yonkers — another slots-only venue — were in the catbirds’ seats to land two of the three licenses.

Resorts World New York has some advantages. The property has already delivered billions in tax revenue to Albany since opening, including $600 million last year. Genting has promised that figure could swell to $1 billion annually if it can convert the venue to a Las Vegas-style casino. The operator also said it would allocate $5 billion to Resorts World New York to enhance the property and convert it to a traditional casino should it one of the permits.

Additionally, Sen. Joseph Addabbo (D-Queens) represents the district near Resorts World New York. He’s one of the primary architects of gaming-related legislation in the state and has a comfortable, established working relationship with affiliates of Genting.

The Malaysian gaming giant also told investors that it’s open to other New York-related opportunities, including iGaming. Internet casino legislation didn’t pass in the most recent legislative session, but those efforts are expected to be attempted again next year.

Genting Looking to Firm New York Position

Whether it’s by way of Resorts World New York or its other gaming venues in the state, Genting told investors it wants to “solidify” its position in the Northeast. Related efforts are expected to include cross-marketing promotions and expansion of its customer database.

Specific to Resort World New York, a potential wild card is how New York regulators view the controversies surrounding Scott Sibella. A complaint filed by the Nevada Gaming Control Board (NGCB) charged Sibella with allowing illegal bookmakers to wager large sums of money at MGM Grand on the Las Vegas Strip when he was president of that venue.

After his tenure there, Sibella joined Genting’s Resorts World Las Vegas where he was terminated in September 2023 for alleged violations of company policy.