Genting Malaysia well placed to win full New York casino license: Maybank IB
Genting Malaysia’s slots-only New York casino, Resorts World New York City, is well placed to win a full casino license should state officials move in that direction next year, according to Maybank IB Research analyst Samuel Yin Shao Yang.
The New York State Gaming Commission last month launched a Request for Information (RFI) solicitation in order to seek out thoughts from interested parties on the appropriate size and scope of development, the value of gaming licenses for such facilities and the process that should be used in award consideration should it proceed with a Request for Proposal (RFP).
Although there is no guarantee that will happen, Yin believes Genting Malaysia holds a natural advantage if it does because its casino is already operational, albeit without gaming tables.
“We opine that Genting Malaysia’s RWNYC is in a good position to win one,” he wrote in a Monday note. “If the New York State Gaming Commission proceeds to launch an RFP, we opine that RWNYC will have an edge as it can deploy table games and generate additional tax revenue for New York State quickly as opposed to a greenfield casino.”
Yin estimates a fully licensed RWNYC would contribute annual net profit of around US$145 million to Genting Malaysia and increase the target price of its shares by MYR0.53, from MYR3.40 to MYR3.93.
“A downstate commercial casino will be the ‘ultimate prize’ for RWNYC as it will be allowed to deploy table games and be located in or near New York City,” he said. “What excites us is the prospect of converting GENM’s RWNYC into a downstate commercial casino. RWNYC currently offers only slot machines and lacks table games.”
Under the New York State Gaming Commission’s RFI, interested parties have until 10 November to submit questions and until 10 December to submit full responses. The Commission will then provide a report to the New York Governor and State Legislature by no later than 10 June 2022.