The complaint by the Nevada Gaming Control Board against Resorts World Las Vegas for alleged compliance breaches could jeopardize Genting Group’s bid to win a full casino license in New York, brokerage CIMB Securities has warned.
As reported by Inside Asian Gaming, the complaint alleges RWLV and Genting failed to fulfill their responsibilities as a holder of a privileged Nevada gaming license by allowing individuals with suspected or proven ties to illegal activities to gamble on property. Specifically, it details how agents uncovered a lack of compliance within Resorts World Las Vegas (RWLV) which the NGCB says allowed a culture that welcomed “certain individuals with suspected or actual ties to illegal bookmaking, histories of federal felony convictions related to illegal gambling businesses, and ties to organized crime.”
As per The Edge Malaysia, CIMB analysts wrote in a note issued earlier this week, “We think [a] risk is that a negative review by the commission could jeopardize Resorts World New York City’s bid” to obtain a full license, with bidding set to open in mid-2025. Genting Malaysia, a major subsidiary of RWLV owner Genting Bhd, has been touted as a strong favorite to win one of the three full New York licenses on offer given it already operates the slot only Resorts World New York City (RWNYC) in Queens.
According to CIMB, a negative result in New York could prove a double whammy due to RWNYC’s existing slots business also likely suffering if other casino operators successfully secure a license while it doesn’t.
It has been suggested that RWLV is facing around 300 separate violations in the NGCB’s complaint, which could see it face a fine of up to US$75 million and suspension or revocation of its license.
However, “Some industry experts say that this is rare and the commission is unlikely to go that far, due to the uncertain long-term impact from taking such a drastic measure,” CIMB analysts said.
RelatedPosts
