Empire Resorts Fully Acquired by Genting Malaysia, Securing Full Ownership
Genting Malaysia Takes the Plunge with Full Acquisition of Empire Resorts Inc.
It's full steam ahead for Genting Malaysia Berhad as they take the reins of Empire Resorts Inc., now holding a whopping 100% stake in the struggling casino operator. This blockbuster deal, valued at around $41 million and announced on May 31, 2025, was splashed all over the betting world this week.
Saddling Up for $40 Million in Legacy Debt
This offering doesn't come cheap, see, with Genting Malaysia becoming the proud holder of a hefty $40 million in debt that used to belong to Kien Huat Realty III, a private investment group under the Lim family, who also run the Genting Group.
Empire Resorts, managing a trio of gaming properties in New York State — Resorts World Catskills, Resorts World Hudson Valley, and the mobile betting app Resorts World Bet — just got a whole lot more Malaysian. Resorts World Catskills, the headliner, is located 90 miles north of New York City.
Genting Malaysia previously owned 49% of Empire's common stock but commanded 90% of the company's financial outcomes, thanks to its preferred equity holdings. With this fresh deal under their belt, they now call the shots.
Ring the Alarm Bells: Investors and Analysts Worried
This buyout's got everyone in a spin. The brokerage firm Nomura's not mincing words, deeming it a questionable financial move. They point out that Empire's yet to turn a profit since Genting first invested in 2019. Over the last six years, they've pumped a staggering $700 million into this beast but with little sign of improvement. Experts think Genting's more at risk from Empire's losses now that they're fully in the driver's seat.
Credit Agencies Chime In: Bailout on the Horizon?
Seems the tune's the same from the credit agencies, who share these concerns and warn that the deal's bad for credit, as Empire continues its streak of weak performance and poses a possible threat to Genting Malaysia's financial health. This deal's starting to look like a related-party transaction, which could further stir unease among investors.
This move drops just as Genting Malaysia grapples with bigger financial woes of its own. Its latest financial report indicates a slip in overall revenue by 6% to MYR2.6 billion ($613 million), while an 7% dip in revenue from its primary Malaysian venue, Resorts World Genting, casts a long shadow over the company.
Center of Attention: New York City Casino License Awaits
Genting Malaysia's gunning for a full casino license in New York City later this year. This buyout might just be a move in their grand plan to dominate the US market, but at the moment, market watchers are playing it cool, carefully weighing the risks.
[1] Data gathered from Bursa Malaysia report.[2] Data gathered from Inside Asian Gaming report.[3] Data gathered from Empire Resorts Inc. official website.[4] Data derived from an analysis by S&P Global Ratings.[5] Data extracted from an online article published on MCO Today.
- Despite the acquisition, investors and analysts, such as Nomura, are alarmed by this move, viewing it as a potentially reckless investment due to Empire Resorts' persistent losses and lack of profit since Genting first invested in 2019.
- The inclusion of $40 million in debt previously held by Kien Huat Realty III, a private investment group, into Genting Malaysia's portfolio, raises concerns among credit agencies, who warn that the deal could negatively impact Genting Malaysia's financial health and be a possible indicator of a related-party transaction.
- With the acquisition, Genting Malaysia has set its sights on expanding its presence in the US casino industry, particularly in New York City, as they aim to secure a full casino license later this year. However, the success of this venture remains uncertain and is closely monitored by market watchers amid concerns about the company's current financial difficulties.
