Global casino operator Genting Malaysia Bhd (GENM) aims to offload the non-gaming assets of its underperforming US subsidiary, Empire Resorts Inc (ERI).
ERI operates Resorts World Catskills in Monticello, about 80 miles (129 kilometres) northwest of New York City. In 2019, GENM bought a 49% stake in the perpetual loss-maker. It tried to swing it to profitability, investing US$765.4 million with little return. Last May, it acquired the remaining 51% from Kien Huat Realty, owned by Lim Kok Thay, Genting’s executive chairman.
According to the proposal announced on Friday, ERI will sell two hotels, an 18-hole golf course, the 2,500-seat RWC Epicenter, a spa and multiple restaurants. The prospective buyer is Sullivan County Resort Facilities Local Development Corp, which will pay $525 million for the assets.
In a Monday note, Maybank said it was “positively surprised” at the proposed deal, which could boost GENM’s 2026 earnings by 24%.
ERI will use the proceeds to buy more than 1,300 acres of land from EPR Properties, a US-based REIT. It will also redeem $300 million in 7.75% senior unsecured notes set to come due in November 2026.
Resorts World hotels, golf course, more on the table
Hong Leong Investment Bank also responded positively to the strategy, which would render ERI debt-free.
“It would strengthen Empire Resorts’ asset base and secure long-term control over the 420 acres of land on which Resorts World Catskills’ gaming and non-gaming facilities are situated,” HLIB noted, “as well as… vacant land with development potential.
“The proposals are also anticipated to generate surplus cash of $10 million for general working capital,” HLIB continued. “Overall, we estimate these proposals could lift our FY26 to FY27 profit forecasts by 10% and 8% respectively, assuming the proposals are successfully implemented by end-FY25.”
Genting looks to shore up NY position
In a Monday filing, GENM said the deal will “improve its competitive position within the New York state gaming market and the broader northeastern US region”. The operator of Resorts World New York in Queens is one of eight bidders for three downstate New York casino licences to be awarded by year’s end. If its application is successful, it could transform that VGT parlour into a full-scale casino resort.
According to MarketWatch, the Sullivan County Development Corp hopes winning a New York City licence “would create a significant cross-selling opportunity for the Catskills casino”.
Both Maybank and HLIB maintain a “hold” on GENM shares pending the deal’s close.
The Genting Malaysia portfolio includes Resorts World Genting, Malaysia’s only casino, plus casinos in the UK, Egypt and the Bahamas. ERI also owns Resorts World Hudson Valley in Monticello and the mobile sports betting platform Resorts World Bet.
Genting Malaysia plans to lighten its debt load with the sale of two hotels, a golf course and other amenities at Resorts World Catskills in New York.