Resorts World Las Vegas is alleged to have failed to ban criminals and illegal bookmakers from its casino.
PETALING JAYA: Genting Bhd is in a bind after the Nevada Gaming Control Board filed a slew of complaints last week against its unit, Resorts World Las Vegas (RWLV), that could potentially derail its US gaming operations in Nevada and New York.
The board alleged that RWLV, an indirect wholly owned subsidiary of Genting, failed to ban individuals with ties to organised crime and illegal bookmaking from its casino in Las Vegas.
Advertisement
The Nevada gaming regulator said the casino operator failed to establish the source of suspected bookmaker funds and address suspected illegal bookmakers.
It is seeking fines for each violation of the Nevada Gaming Control Act and mulling appointing a supervisor to determine if the company’s gaming licence should be revoked or suspended.
SPONSORED CONTENT
Enjoy a taste of Malaysia, everyday with Ayam Brand™ local pastes
SHAH ALAM: Fact: Every time Malaysians travel abroad, we almost immediately miss the taste of home. You don’t need to be homesick to celebrate Malaysia’s rich culinary heritage when you can savor the authentic taste of Malaysia in your own home with Ayam Brand™ cooking pastes.
In a note, CIMB Securities said there are allegedly some 300 separate violations, which may result in a fine of up to US$75 million (RM328 million).
In addition, there is the prospect of suspension or revocation of RWLV’s non-restricted gaming licence if the commission finds that state laws have been broken, it said.
Some industry experts say that this is rare and the (board) is unlikely to go that far, due to the uncertain long-term impact from taking such a drastic measure, said the research house.
Genting said last week it is actively working to communicate with the Nevada gaming board and looks forward to resolving the issues raised and ensuring business practices at RWLV meet all regulatory and legal requirements.
Genting and its subsidiaries are committed to doing business with the utmost integrity and in line with applicable laws and industry guidelines, it said in a bourse filing.
RWLV’s casino resort is among the newer properties on the Las Vegas Strip, the gaming capital of the US. The US$4.3 billion (RM18.8 billion) property opened in June 2021 featuring 3,500 hotel rooms and a 5,000-seat theatre.
New York casino licence
CIMB also warned that the complaints filed by the regulator could adversely affect Genting’s bid for a downstate New York full casino licence. Genting operates the New York gaming operations, primarily slot machines, through its subsidiary Genting Malaysia Bhd.
We think another risk is that a negative review by the (Nevada) commission could jeopardise Resorts World New York City’s bid for the licences, which are open for applications in mid-2025, it said.
The final award could come between end-2025 and the first quarter of 2026, it noted.
Genting’s problems in Nevada come on the back of the setback faced by Genting Malaysia which saw a deal to sell a plot of land in Miami, Florida, for US$1.2 billion (RM5.25 billion) fall through in June last year.
Genting Malaysia purchased the 15.5-acre land in 2011 for US$259 million (RM1.13 billion) with plans to develop an integrated resort – Resorts World Miami.
However, it was unable to sway the state authorities in its bid for new gambling legislation and eventually abandoned the project.
Funds from the Miami land sale had been expected to finance the group’s bid for a full casino licence in New York, where it competes with other Asia-linked operators for one of the three licences up for grabs.
Genting’s shares closed 2.3% or 10 sen lower at RM4.30 yesterday, valuing the group at RM16.67 billion.
