GGRAsia – Genting breaks ground on hotel for New York casino

Genting breaks ground on hotel for New York casino

Jul 14, 2017 Newsdesk Latest News, Top of the deck, World

Malaysian conglomerate Genting Bhd broke ground on Thursday for a 400-room hotel at its Resorts World Casino New York City property (pictured) in the United States, according to a statement that day. The property does not currently offer hotel accommodation, according to its website.

The addition to the venue will also provide more casino space, new shops, restaurants and entertainment facilities.

The press release said the project was estimated to generate “US$200 million in economic activity” for New York, add approximately 1,000 “good-paying careers for New Yorkers”, and provide approximately 3,000 construction jobs and “thousands of indirect jobs”. It would also provide “additional revenue for New York State’s Lottery Education Fund,” which the release said had already received more than US$1.9 billion from Resorts World New York since the facility opened in 2011.

The existing venue in the borough of Queens, is operated by a local unit of Genting Malaysia Bhd. It only offers slot machines and electronic table games – live dealer tables are not allowed.

Edward Farrell, president of Genting Americas Inc, was quoted on Thursday as saying in an interview with Bloomberg News that the group was still seeking to “diversify” its portfolio of properties in the U.S., and to have “the right assets in the right cities”.

In May this year, Genting Americas announced that its Resorts World Las Vegas scheme – for which there was a ground breaking ceremony in May 2015 – would start full construction in the third quarter this year, with them aim of opening the venue in 2020. The developer had previously mentioned a 2018 opening.

Genting Malaysia hopes to manage a casino in neighbouring Massachusetts on behalf of a Native American tribe. But the plan for the US$1-billion facility near Taunton, south of Boston, is currently delayed by a lawsuit between the Mashpee Wampanoag tribe and local residents.

Plans for a Genting casino in Miami, Florida, are currently subject to debate by local lawmakers.

In its filings to Bursa Malaysia, Genting Malaysia doesn’t give itemised revenue specifically for its existing New York facility, instead combining United States and Bahamas operations under a single heading. Nor does it itemise gaming revenue.

According to the firm’s 2016 annual report published on April 4, in the 12 months to December 31, the U.S. and Bahamas produced total “leisure and hospitality” revenue of just under MYR1.37 billion (US$319.1 million).

In 2016, Genting Malaysia booked “non-current assets” for the U.S. and Bahamas amounting to MYR6.47 billion.