The recent acceleration of casino legalization efforts in Thailand contrasts starkly with the deceleration observed in the US state of New York. Both developments have significant implications for the Genting Group, a prominent player in the global casino industry. Nomura analysts have offered insights into how these dynamics might influence the company’s trajectory.
Thailand’s Casino Legalization Efforts
In Thailand, the momentum towards integrated casino resorts has gained traction with the approval of a House Committee report by the House of Representatives. This report, advocating for the development of such resorts, received subsequent endorsement from the Thai cabinet. Nomura analysts anticipate the completion of a feasibility study by the Ministry of Finance, scheduled for this month, which could pave the way for formal legislation.
Impact on Genting Group
Should Thailand proceed with legalizing casinos, Genting Group stands to be heavily impacted. The company currently operates Resorts World Genting in Malaysia and Resorts World Sentosa in Singapore, catering to a significant portion of the overseas traveler market. The emergence of a Thai integrated resort would introduce a new competitor vying for this same pool of travelers. Notably, Nomura analysts suggest that Genting Group may actively pursue a bid to develop an integrated resort in Thailand once the regulatory process commences.
New York’s Regulatory Delays
In contrast to Thailand’s swift progression, regulatory processes in New York are experiencing delays. The state’s gaming commission has announced a postponement in issuing full casino licenses for up to three downstate casinos until at least late 2025. This delay is attributed to the necessity of conducting environmental reviews and potentially amending local zoning laws. The affected areas include Coney Island, the Bronx, and Hudson Yards.
Impact on Genting Group
Genting Group, along with MGM Resorts, is considered a front-runner in the New York casino license process. Their proposals entail the expansion of existing slot machine-only facilities, such as Resorts World New York City in Queens, which commenced operations in 2011. Despite Genting Malaysia’s advantageous position with its pre-existing facility and strong community relations, Nomura analysts view the delay in the licensing process as unfavorable. Any positive outcomes for Genting Group in New York will now be deferred until at least the following year.
Malaysian Regulatory Landscape
The Malaysian regulatory landscape also bears relevance to Genting Group’s operations. Recent denials by Malaysian officials regarding reported discussions concerning a second casino license for the southern city of Johor have removed uncertainties surrounding Malaysia and Singapore integrated resorts (IRs). This development is deemed positive for Genting Singapore, Genting Malaysia, and parent company Genting Berhad.
The diverging trajectories of casino legalization efforts in Thailand and New York hold significant implications for Genting Group’s operations and future prospects. While Thailand’s potential entry into the casino market poses competition for the company, regulatory delays in New York postpone potential benefits. Clearer regulatory landscapes in Malaysia and Singapore provide some relief amidst these uncertainties. As Genting Group navigates these dynamic environments, strategic decision-making will be paramount in ensuring continued success in the global casino industry.