Genting Group chairman Lim Kok Thay said Resorts World New York City could become one of the group’s most successful gaming investments, potentially matching or surpassing Resorts World Sentosa in Singapore. He said the Queens casino met expectations after launching live dealer gaming in April, citing New York’s population and income levels.
The prospect bears on Genting’s investment outlook for its New York casino.
The day’s most important stories, free. One email a day.
Fitch said slower earnings growth and heavy capital spending are keeping leverage high among gaming operators in Asia-Pacific, with recent downgrades linked to company-specific pressures. It expects Genting Bhd's net leverage to remain above 4.0 times over the next three years and Genting New York's annual capital spending to average around US$800 million over the medium term.
Fitch Ratings expects Genting New York to generate approximately US$450m in EBITDA in 2028. The forecast reflects a gradual expansion of gaming at Resorts World New York City, which Genting New York operates.
Fitch downgraded the Long-Term Issuer Default Ratings of Genting Berhad, Genting Overseas Holdings and Resorts World Las Vegas, citing large expansion commitments in New York and Singapore and high New York start-up costs. Genting Berhad and Genting Overseas Holdings fell from BBB to BBB-, while Resorts World Las Vegas moved from BBB- to BB+, all with stable outlooks; Fitch forecasts Genting New York EBITDA of about US$450 million by 2028.
Genting said financing is in place for the Resorts World New York City expansion in New York, without disclosing the funding structure. The company put the total investment at $5.5bn, including $1.1bn already invested and $4.4bn in new capital expenditure, with the expanded property expected to be completed by 2029.
It was reported that Genting began the $5.5bn second phase of Resorts World New York City’s redevelopment. Plans include two hotel components and an arena with 7,000 seats, alongside gaming and hospitality facilities.