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Genting Malaysia proposes $100m injection for US-facing Empire Resorts

| By Robert Fletcher
Genting Malaysia (GENM) has announced a proposal to inject an additional $100m (£78m/€92m) into its US-facing subsidiary Genting Empire Resorts.
Genting Empire Resorts

The initiative will be funded by a Series M subscription agreement. Genting Empire Resorts has agreed to subscribe for up to $100m worth of Series M preferred stock of empire.

Empire Resorts will use proceeds from the subscription working capital purposes. Funds will also pay off an existing bank facility of approximately $58m.

Stock can be converted on or after 31 December 2030. The Series M stock will mature on 31 December 2038.

New York focus for Genting Empire Resorts

Empire Resorts owns the Resorts World Catskills casino and Resorts World Hudson Valley gaming facility, both located in New York. It has also offered mobile sports wagering in the state since March 2022.

Resorts World Las Vegas, which opened in June 2021, is operated by a separate arm of the Genting Group. 

“The proposed equity injection will enable Empire to further optimise its capital structure by reducing financial leverage and correspondingly interest expense,” GENM said. 

“In addition, this will allow quicker ramp up for Resorts World Hudson Valley and enable Empire to continue its focus on strengthening Resorts World Catskills’ operating performance to realise its full potential.

“The proposed equity injection will also allow GENM to reinforce its position and grow its market presence in the expanding New York State gaming market to compete effectively in the north-eastern US region. Resorts World Catskills will also be able to continue benefitting from the operating synergies with Resorts World New York City.”

Resorts World Genting reaches for the sky

The proposal comes on the back of a multibillion dollar makeover at Resorts World Genting.

The facility stretches across an area measuring 1.2 million metres, with gaming forming a key part of the site. This includes SkyCasino which, opened in 2017, has 70% of the resort’s 600 gaming tables, 2,000 slots and 1,300 electronic gaming terminals.

Top games are baccarat, roulette and sic bo, with betting on totals and combinations from three dice. 

Lasst month iGB Asia editor at large, Muhammad Cohen, covered the revamp in an in-depth article on iGB.

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