The acceleration of casino legalization efforts in Thailand, and the deceleration of similar efforts in the US state of New York, both stand to significantly impact Malaysia’s Genting Group, with the company to be heavily involved in both processes, according to Nomura analysts.
In a note, Tushar Mohata and Alpa Aggarwal pointed to the recent approval by Thailand’s House of Representatives of a House Committee report recommending the development of integrated casino resorts, and its subsequent endorsement by the Thai cabinet.
With a feasibility study to be completed by the Ministry of Finance within this month which could pave the way for formal legislation, Nomura said any positive decision on legal Thai casinos would impact Genting because a Thai IR would inevitably compete for the same pool of overseas travellers as Malaysia and Singapore, where the company operates Resorts World Genting via Genting Malaysia and Resorts World Sentosa via Genting Singapore respectively.
“That said, we believe the Genting group will also be looking to make a bid [to develop a Thai IR] once the process starts,” the analysts wrote.
Also impacting Genting are recent revelations from New York’s gaming commission that a decision on issuing full casino licenses for up to three downstate casinos would be delayed until at least late 2025 due to the need to conduct environmental reviews and potentially amend local zoning laws – primarily in relation to proposals for new casino developments in areas like Coney Island, the Bronx and Hudson Yards.
Genting Malaysia and MGM Resorts are considered front-runners in the process because their proposals are for expansion of existing slot machine-only facilities, with Genting’s Resorts World New York City having opened in Queens in 2011.
Nomura described this latest development as a negative for the Malaysian casino giant, writing, “While we think Genting Malaysia has an edge over other bidders due to its pre-existing facility in Queens and strong community relations, the delay in license process means any positive catalyst from New York will have to wait, at least until next year.”
By contrast, the analysts said denials by Malaysian officials in relation to reported discussions over a second casino license for the southern Malaysian city of Johor “should remove an overhang on the Malaysia and Singapore IRs, and is a positive development for Genting Singapore, Genting Malaysia and [parent] Genting Berhad.”
