Asian casino parent groups could experience “leveraging impacts” in case of NY project

The parent firms of several casino brands that operate in Asia would see “leveraging impacts” if any of them are granted one of the three downstate full-casino licenses in New York, according to S&P Global Ratings.

These projects range in projected project sizes from $2 billion to over $5 billion, which might extend deleveraging or provide the winning bidder more power. According to S&P Global, licenses will be granted by New York no earlier than the second half of 2024, with significant capital expenditure starting in 2025 or later.

Las Vegas Sands Corp., Wynn Resorts Ltd., and MGM Resorts International are among the companies that S&P Global recommends for a downstate New York license. In Macau, each of the three has concessions. Furthermore, Wynn Resorts is working on a project in the United Arab Emirates, while Las Vegas Sands and Wynn Resorts are planning sites in Singapore.

Another potential rival is Malaysia’s Genting Bhd, which operates a monopoly casino industry in Malaysia via Genting Malaysia Bhd and has a Singapore license through Genting Singapore Ltd.

S&P Global acknowledges that the ongoing recovery in gross gaming income necessitates sustainable investment requirements under new concessions in Macau. The supplementary assurances made by casino businesses in Singapore and Japan are also included in the text, which suggests that any leveraging effects in New York may not happen for a year or more.

Original story by: GGRAsia