Genting Bhd’s continued pursuit to acquire Genting Malaysia has taken a significant step forward as it seeks to boost the company’s New York expansion ambitions.
A key incentive of the deal is to streamline capital for Genting Bhd as it eyes a successful move into the New York market, through Genting Malaysia’s Resorts World New York City.
The company lifted its stake in Genting Malaysia from 49.36% to just over 50% – a small but significant move as it enables the validation of a potential takeover.
As a result, the transaction is clear to be completed by the closure of 2025 and pave the way for the company’s move into New York.
Should the firm achieve success in its bid for a New York licence, it would boost the expansion of Resorts World to provide the full casino experience, which notably would enable the group to offer table games and a far wider portfolio of products to its players.
The firm’s already strong gambling presence in New York bodes well for its expansion prospects as the New York market eventually takes shape.
Operating in excess of 5,800 video terminals, the proposed expansion is set to be a significantly lucrative one for Genting, and is further boosted by its favourable location – given its proximity to JFK Airport.
Following the surprising departure of MGM Empire City from the race for licenses, optimism for Resorts World was elevated as it became one of three companies competing for three licenses.
The group sits alongside Bally’s $4bn plan for a casino at Ferry Point in the Bronx, the Hard Rock Casino Citi Field project in Queens led by New York Mets owner Steve Cohen in the race.
Off the back of the withdrawal, Resorts World New York accelerated its proposals through a myriad of fresh investment pledges.
As part of a supplemental application submitted to the New York State Gaming Facility Location Board, Resorts World committed a further $2bn to community benefits surrounding the proposed expansion of Resorts World’s current slots-only venue at Aqueduct Racetrack in Queens.
This, combined with the projected $5.5bn spend on developing the casino resort, brings Resorts World’s investment to $7.5bn.
Resorts World also states that it is willing to pay a licensing fee of $600m, $100m more than the minimum licensing fee set out by the state.
Robert DeSalvio, President of Genting Americas East, stated: “No other project will come online faster, generate more financial impact, create more jobs or send more revenue to the state’s education fund, the MTA and local communities than Resorts World New York City.”
