Genting Malaysia said via a Tuesday filing that it has now completed the acquisition of the 51% interest in New York entity Empire Resorts Limited that it didn’t already own from the family trust of Genting Group patriarch Lim Kok Thay.
The transaction, valued at US$41 million plus added debt, essentially sees Genting Malaysia boost its economic interest from 90% to 100%, because although it only held 49% of common stock it had equity accounting for 90% of Empire’s losses because it also owns Empire convertible preferred stock.
Empire’s assets include Resorts World Catskills, located 90 miles north of New York City, Resorts World Hudson Valley and mobile sports wagering operator Resorts World Bet.
As previously reported by Inside Asian Gaming, analysts have long viewed Genting Malaysia’s growing stake in Empire as a negative given its extensive losses, with the company having invested US$720 million into the company since 2019. It is expected the group will have to continue injecting capital to support the business into the future.
“Similar to previous tranches, we are negative on this latest transaction as well and think that investors are likely to perceive it as another related-party transaction detrimental to Genting Malaysia’s prospects,” said Nomura analysts last month.
“This is because there does not yet appear to be a clear path to sustainable turnaround in Empire’s performance [and] after this acquisition, with Empire becoming 100% owned by Genting Malaysia, it is likely that Genting Malaysia will need to keep injecting capital to support Empire’s business.”
Genting Malaysia would also need to consolidate a larger share of losses from Empire, the analysts explained.
Genting Malaysia recently reported a 6% decline in group-wide revenue to MYR2.60 billion (US$613 million) in the three months to 31 March 2025, including a 7% drop in revenue at flagship Malaysian property Resorts World Genting (RWG) to MYR1.62 billion (US$382 million) due to challenges in the premium player segments.
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