GENM: Gaming Operator Advances in New York Casino Bidding, Eyes Early Launch
| Investment Bank | TA SECURITIES |
|---|---|
| TP (Target Price) | RM0.25 (+25.0%) |
| Last Traded | RM0.20 |
| Recommendation |
A prominent gaming operator, through its wholly-owned subsidiary, Resorts World New York City (RWNYC), has been successfully shortlisted as one of three contenders for a new downstate casino license by the New York Gaming Facilities Location Board (NYGFB). This significant development follows the withdrawal of another major player, simplifying the competitive landscape and securing exclusive exposure to the region for the operator in the near term.
Key Developments and Timeline
RWNYC is currently undergoing stringent mandatory security, fitness, and background checks, a crucial prerequisite for the New York casino license. The license is anticipated to be issued by December 31, 2025. Furthermore, Phase 1 of the gaming facilities is now slated to reopen by March 2026, which is ahead of the previously guided June 2026 timeline. This accelerated schedule provides potential earnings upside for the company. The casino project entails US$500 million in license fees over a 30-year term, with an estimated capital expenditure of US$3.3 billion.
Future Outlook and Risks
The company is well-positioned to be a significant beneficiary of Visit Malaysia 2026 and stands to gain long-term potential from the new downstate NYC casino license. The early reopening of facilities further bolsters this positive outlook. However, key risks that could impact performance include fluctuations in win rates, changes in gaming taxes, potential lift or drag from key associates, and value-destructive related-party transactions.
Analyst’s View
Despite the positive development regarding the New York license, the investment bank maintains its HOLD rating with a 12-month target price of RM2.35. The bank notes that any potential contributions from the new downstate license in the initial years of operation are expected to be offset by set-up costs and finance costs associated with the new development, indicating a balanced view on the immediate financial impact of this long-term opportunity.
