Genting Group Moving Beyond its Asian Roots

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Monday, July 31st, 2017 | Written by Stephen Smith

While U.S. based gambling operators are always looking for opportunities to enter new markets abroad, Asian gambling operators are increasingly setting their sights on thriving markets in the United States for expansion. One such operator is the Genting Group, a Malaysian conglomerate that has operated in Asia since 1965, and is now investing heavily in expanding their footprint in the U.S. Here is a look at some of the Genting casinos that are in development, being revamped or are already open and running. As Edward Farrell, president of Genting Americas, explains:

“We want to diversify the portfolio, spread out the risk and be able to leverage international travel by having the right assets in the right cities.”

Resorts World Las Vegas

In 2020, the Las Vegas Strip is scheduled to celebrate the first opening of a new casino in a decade. Genting bought the property in 2013, and has been working on the design of their new luxury casino ever since. Genting’s Resorts World, which has committed $4 billion to the new casino and hotel, will be located at the northern end of the Strip and feature 3,000 guest rooms. Industry analysts say the timing could be ideal for the company, as the city is now building a $1.7 billion stadium to serve as home for their new National League Football team, the Raiders.

Resorts World New York City

Located near John F. Kennedy International Airport in Queens, New York City, Resorts World New York City is the only casino within the Five Boroughs. In 2016, the casino brought in $826.5 million in gross gaming revenue for Genting, a sum bigger than the gross gaming receipts for Atlantic City’s biggest casino, the Borgata Hotel Casino & Spa. That’s a hefty sum when you consider that the casino only offers electronic slots and games, and is not legally able to offer table games. For the privilege of being the only casino in the Big Apple, Genting pays a 70 percent tax rate. To enhance the property, the casino is investing $400 million to add a 400-room hotel that will include a restaurant operated by a celebrity chef.

Resorts World Catskills

Genting is currently working on a project to build a new casino just outside New York City called Resorts World Catskills. The casino will have a 100,000 square foot gaming floor with 2,150 slot machines and 130 gaming tables. Also found on the property are a 332-suite hotel, a 2,000-seat entertainment venue, bars, restaurants and a luxury spa. Construction on the casino is nearly complete, and it is scheduled to open in March 2018.

Boston Casino

Genting has entered a partnership with the Mashpee Wampanoag tribe to build a massive casino resort 40 miles south of Boston. The Malaysian firm has pledged $347.4 million to the $1 billion project, which will include a large casino and three hotels. Currently, the deal is snagged by a legal dispute that may eventually lead to the deal collapsing.

Miami Casino

Genting purchased the Miami Herald Building for $236 million in 2011 in hopes of converting the property into a luxury casino. So far, Genting has faced opposition from Florida lawmakers who do not wish to expand gambling in Miami.

Uncertainty Back Home

While Genting has continues its expansion plan in the US, the group is experiencing a greater level of uncertainty back home in Asia. The Philippine-based Resorts World Manila, for instance, had parts of its operation closed for more than a month following a horrific arson attack by a gunman that resulted in the deaths of 38 people.

Meanwhile, the Resorts World Sentosa in Singapore, one of only two casinos on the island state, has consistently played second fiddle to Las Vegas Sands Corp owned Marina Bay Sands. Its woes has been further compounded by the anti-corruption campaign by the Chinese government, with the gambling venue now appealing to casual gamblers and tourists to replace its waning revenue. As Bloomberg Intelligence analyst Margaret Huang, explains:

“They’re trying to improve some of the theme parks and attractions that they have, enhancing their product in order to drive more of the masses.”

With this goal in mind, Marina Bay Sands has been upgrading its facilities and features for more than three years, resulting in an uptick in customers which should be reflected in the resort’s end of year revenue.