This article first appeared in The Edge Malaysia Weekly on December 8, 2025 - December 14, 2025

Genting Malaysia Bhd (KL:GENM) has won a full-fledged casino licence in New York City. The announcement came after Genting Bhd’s (KL:GENTING) takeover bid to privatise GENM at RM2.35 per share closed on Dec 1.

In a filing with Bursa Malaysia, GENM says the New York Gaming Facility Location Board is expected to announce the issuance of licences by Dec 31.

In GENM’s submission to the board, it wrote that its indirect subsidiary Resorts World New York City is positioned to open the first phase of its casino by June 2026 — roughly six months from now, ahead of its two rivals.

Investors, however, do not seem to see this latest development as GENM hitting the jackpot, although some analysts view the new licence as a catalyst to drive future earnings growth.

Its share price has fallen after the news. CreditSights, a research outfit under Fitch, has pointed out that GENM and its parent Genting are facing increased risks of rating downgrades, given the latter’s high debt and weak cash flow.

In a report dated Dec 3, CreditSights noted that Genting’s credit ratings downgrade risk also affects GENM because its ratings are tied to those of the former, which holds a 73.8% stake. The research firm warned that GENM’s leverage could worsen from the front-loaded US$5.5 billion (RM22.7 billion) New York expansion costs that are largely debt-funded.

Any downgrade will raise its borrowing costs, if it needs to raise money to fund the new casino project in New York.

In the proposal to the New York state authorities, GENM committed a total investment of US$7.5 billion (RM31.7 billion), of which US$5.5 billion will be spent on building the casino. The remaining sum will be allocated to 30-year community programmes.

The enormous investment raises a question: How much will GENM need to raise to fund the New York casino project when its other New York property, Resorts World Catskills, is bleeding red ink?

The company’s net gearing ratio stood at 0.89 times as at end-September, with net borrowings at RM9.72 billion.

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