Key Moments:
- Maybank analysts have indicated that Genting Malaysia (KLSE: GENM) is “virtually assured” of a casino license in downstate New York
- Resorts World New York City plans to start full-scale casino operations within six months of licensure, with significant expansion targets set for 2029
- Maybank projects RWNYC’s expansion could elevate Genting Malaysia’s net profit to MYR1.93 billion ($455 million) by 2030
Licensing Prospects Gain Momentum
Genting Malaysia Berhad is stepping up efforts to secure a full casino license in downstate New York. This comes after Maybank Investment Bank Bhd. issued a positive forecast. Analysts now believe the company is virtually assured of approval. This milestone could strengthen its global reach and financial performance.
Meanwhile, New York State plans to issue three commercial casino licenses by the end of 2025. According to Maybank analyst Samuel Yin Shao Yang, only three serious contenders remain. He identified Genting’s Resorts World New York City (RWNYC) in Queens as a leading candidate.
“We believe that all three remaining bidders, including Genting Malaysia’s Resorts World New York City, are virtually assured of a licence each,” Yin wrote in a note on Tuesday. “We gather that it [New York state] will award all three in order to raise as much revenue as possible for the state.”
RWNYC’s Proposal: Fast-Tracking Full Casino Operations
RWNYC currently operates as an electronic gaming venue. Once licensed, it plans to transition quickly into a full-scale casino. The company expects to open a permanent facility within six months, starting with 4,000 slot machines and 250 table games. By 2029, it aims to reach 6,000 slots and 800 tables. That timeline puts RWNYC far ahead of competitors, many of whom may not open until 2030 or later.
Furthermore, Maybank emphasized RWNYC’s readiness, scale, and financial strength. The proposal includes a $600 million license fee — the highest among applicants. It also features the largest gaming floor and the highest tax rates. In addition, RWNYC plans to offer 2,000 hotel rooms, a 7,000-seat entertainment hall, and a $2 billion community benefits program for housing and city development.
Potential Economic Impact for New York
The anticipated expansion of the downstate casino market is set to significantly impact New York’s gaming landscape. Spectrum Gaming Group estimates the region’s gross gaming revenue could rise to $6.5 billion by 2031, cementing its position as the nation’s second-largest market after Las Vegas. RWNYC is expected to contribute $2.7 billion in gross gaming revenue, representing about 42 percent of the market’s total.
“RWNYC’s expansion represents a step-change for Genting Malaysia’s earnings,” Maybank’s report said. “We see the group on the cusp of becoming a major player in the US gaming landscape.”
Upgraded Financial Forecasts and Equity Implications
With RWNYC’s potential license win, Maybank revised its financial outlook for Genting Malaysia, forecasting a net profit of MYR1.93 billion ($455 million) by 2030, compared to a previous estimate of MYR615 million ($145 million). The expansion could add MYR0.47 per share to the company’s equity value.
“We estimate RWNYC’s expansion will add MYR0.47 per share to Genting Malaysia’s equity value,” Yin wrote. “There could be more upside if RWNYC’s actual gaming tax rate comes in lower than what was proposed, and if non-gaming assets of Resorts World Catskills are sold to Sullivan County Resort Facilities Local Development Corp.”
Spectrum Gaming’s report outlined a projected gaming tax rate of 56 percent for slot revenue and 30 percent for table game revenue.
| Metric | Current Projection | Previous Projection |
|---|---|---|
| RWNYC Net Profit by 2030 | MYR1.93 billion ($455 million) | MYR615 million ($145 million) |
| Potential Equity Value Increase | MYR0.47 per share | N/A |
| Upfront License Fee | $600 million | N/A |
Corporate Developments and Shareholder Response
As Genting Malaysia advances its New York strategy, its parent company Genting Berhad is seeking full control by launching a conditional voluntary takeover valued at MYR6.74 billion ($1.6 billion) for the remaining 50.64 percent of shares. The offer prices shares at MYR2.35 each and aims to strengthen the group’s position ahead of increased international investment.
“The bid involves a proposal by Genting New York to develop a world-class integrated resort destination, with an estimated $5.5 billion project cost,” Genting said in a filing earlier this month. “With control clearly established, Genting will be better placed to lend the Genting Group’s financial strength and network to support the development of this significant project.”
Despite this move, Maybank advised shareholders to decline the takeover bid, asserting it undervalues Genting Malaysia’s prospective growth. Yin noted, “We maintain our view that investors should reject the voluntary takeover offer of MYR2.35 per share.”
- Author
Daniel Williams
