Genting Malaysia to Boost Investment in US Subsidiary

Genting Malaysia (GENM) has revealed plans to invest an additional $100 million in its US subsidiary, Genting Empire Resorts.

This investment will be facilitated through a ‘Series M’ subscription agreement, under which Genting Empire Resorts will acquire up to $100 million in Series M preferred stock of Empire. The funds from this subscription will be used for various purposes, including providing working capital and repaying an existing bank loan of around $58 million. The terms of the stock allow for conversion after December 31, 2030, and it will reach maturity on December 31, 2038.

Genting Empire Resorts to Focus on New York

The Resorts World Catskills casino and the Resorts World Hudson Valley gaming facility in New York are both owned by Empire Resorts. Furthermore, it has been influencing US online gambling and mobile sports betting in the state since March 2022.

The proposed equity injection will enable Empire to further optimise its capital structure by reducing financial leverage and correspondingly interest expense. In addition, this will allow a quicker ramp-up for Resorts World Hudson Valley and enable Empire to continue its focus on strengthening Resorts World Catskills’ operating performance to realize its full potential. The proposed equity Injection will also allow GENM to reinforce its position and grow its market presence in the expanding New York State gaming market to compete effectively in the north-eastern US region. Resorts World Catskills will also be able to continue benefitting from the operating synergies with Resorts World New York City.

StatementGenting Malaysia

Proposal Follows Renovation of Resorts World Genting

In the backdrop of this proposal is the extensive renovation of Resorts World Genting in Malaysia, an undertaking that has cost billions of dollars. The resort spans a vast area of 1.2 million meters and includes the SkyCasino, which opened in 2017. It houses a majority of the resort’s gaming facilities; 70% of its 600 gaming tables, 2,000 slots, and 1,300 electronic gaming terminals. The casino offers popular games such as baccarat, roulette, and sic bo.