The three remaining bidders for a full commercial casino license in downstate New York are all “virtually assured” of a license each, with Genting Malaysia’s proposal to expand its existing Resorts World New York City (RWNYC) property the strongest of the three, according to Maybank Investment Bank.
In a Tuesday note, Maybank analyst Samuel Yin Shao Yang outlined his belief that not only is RWNYC virtually assured of receiving a license that will allow it to deploy gaming tables, but that bids linked to Hard Rock International and Bally’s Corp are also locked in.
However, as far as the state is concerned, the RWNYC proposal remains the most compelling – in part due to its rapid speed to market but also the fact that it has put forward the highest license fees and taxes. Assuming it is awarded a license, Genting Malaysia has stated that it can open a permanent casino featuring 4,000 slot machines and 250 table games by Jun 2026 – just six months after award of a license – with an additional 150 tables to be added by January 2027 in existing space, bringing the total number of table games to 400. The final casino will allow for 6,000 slots and 800 tables by January 2029 while a new hotel, garage and other amenities will progressively be opened by 2030. Even if all goes well, the other two bidders cannot open until 2030 at the earliest, Maybank noted.
It has been estimated in a report by Spectrum gaming Group that RWNYC could generate GGR of US$2.7 billion by 2031 – enough to give it market share leadership of 42% – while New York could collectively generate US$6.5 billion by the same year, enough to make it the second largest gaming market in the US behind Las Vegas.
As reported by IAG, Genting Malaysia’s parent company Genting Bhd is looking to capitalize on the New York opportunity by launching earlier this month a conditional voluntary takeover offer to acquire the remaining 50.64% Genting Malaysia that it doesn’t already own.
In Tuesday’s note, Maybank reiterated its stance that Genting Malaysia shareholders should reject the takeover off of MYR2.35 per share because it undervalues the company based on latest projections.
“We estimate that net profit generated by [RWNYC’s] expansion will peak at a whopping MYR1.93 billion (US$459 million) in 2030 and accrete MYR0.47 per share to our [target price],” said Yin.
“We trim our GEN Malaysia [target price] to MYR2.91 (from MYR2.97). Under a ‘blue sky’ scenario, our Genting Malaysia FV (future value) will be lifted to MYR3.21. We reiterate our view that investors should not accept the voluntary takeover offer of MYR2.35 per share.”
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