Newly appointed Resorts World Las Vegas chair Jim Murren should not only help the company navigate an AML complaint levelled against it by the Nevada Gaming Control Board (NGCB) but could also be the man to simplify operator Genting’s complicated US structure, according to CBRE Credit Research.
In a note, analyst Colin Mansfield described last week’s appointment of Murren as chair of a new Board of Directors – alongside three experienced directors and Alex Dixon as CEO – as “credit positive” given their long histories operating in Las Vegas and ability to attract best in-class talent to the property.
However, he pointed to Murren as the key figure, starting with RWLV’s pending regulatory action. The NGCB filed a disciplinary complaint against the company in August alleging it failed to fulfil its responsibilities as a holder of a privileged Nevada gaming license by allowing individuals with suspected or proven ties to illegal activities to gamble on property.
Murren, the analyst wrote, is “highly regarded by regulators and is leading the gaming regulatory body in the UAE, which should help navigate the Nevada Gaming Control Board’s Aug. 2023 complaint related to AML and illegal gambling activities.
“Long-term, we think Murren could be instrumental in simplifying Genting Berhad’s US strategy and structure, possibly bringing together multiple restricted groups under a unified capital structure, and thus, singular US operating strategy that truly integrates Las Vegas and New York assets.”
The Genting Group operates three New York properties – Resorts World New York City, Resorts World Catskills and Resorts World Hudson Valley – as well as Resorts World Bimini in the Bahamas under its Genting Malaysia subsidiary.
Mansfield also noted that while RWLV – which is wholly-owned by Genting Berhad – has a “complex [debt] structure and single-site risks”, it remains an interesting prospect for high-yield investors given its outsized spread and asset quality.
Credit complexity is related to its split credit ratings, unique subsidiary notching, parent company support agreements and underperformance of the property but the analyst pointed out that the three bonds have kept pace with broader gaming indices in 2024.
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