Two influential New York State lawmakers have voiced strong opposition to the ambitious plans of Wynn Resorts and Related Companies for a casino at Hudson Yards on Manhattan’s West Side. This opposition is particularly significant as one of these lawmakers sits on the panel that will ultimately award the three downstate casino licences.

Assemblyman Tony Simone,(photo top right) representing the neighbourhood, has been vocal about his objections. He is opposing to a casino in the area. Simone’s role on the six-member panel that will vote on whether to recommend the proposed casino to the state Facility Location Board adds weight to his objections. “I’ve been clear: I’m philosophically opposed to a casino on the West Side of Manhattan,” he explained. “The community has been against it and, unless that changes, I’m a no.”

CEO of Related Companies Jeff Blau (photo top left) has been a key figure in promoting and defending the project, highlighting its potential benefits such as job creation, increased tax revenue, and community investments. He has also addressed concerns from local lawmakers and community members regarding the impact on the High Line and the surrounding area.

Assemblymember Deborah Glick, who represents the southern portion of the High Line and chairs the assembly’s environmental conservation committee, echoed similar concerns. In a statement published by the New York Post, Glick highlighted the potential negative impact on the High Line pedestrian park. “The High Line is a unique and beloved park intended to get New Yorkers and visitors outside and above the congested streets and sidewalks,” Glick said. “Any plans that block views from this distinctive vantage point or allow for building closer to the High Line run counter to the High Line Special District and would significantly alter the experience.”

In response to these objections, a spokesperson for Related Companies defended the project in a statement to the Commercial Observer. The spokesperson said that the benefits of the proposal, which includes a massive new park, hundreds of units of affordable housing, and development that will generate tens of thousands of jobs, billions in new taxes, and community investments. “Our proposal to transform the western yards has not even been formally submitted yet, so we would hope our government leaders would wait to read it before forming a judgment,” the spokesperson added.

The proposed Wynn New York City complex is a $12 billion development that would include multiple skyscrapers, 1,500 apartments, two million square feet of office space, a 750-seat public school, a daycare centre, and a hotel and casino operated by Wynn. Despite the opposition, the project is one of 11 vying for the three available downstate licenses in the New York metropolitan area.

As the debate continues, the future of the Hudson Yards casino project remains uncertain, with significant implications for the community and the iconic High Line park.

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Bally’s Corporation has officially entered into a definitive merger agreement with Standard General L.P., marking a significant milestone in the company’s history. This merger, valued at approximately $4.6 billion, is set to reshape the landscape of the gaming and entertainment industry.

The journey to this agreement has been a long one, with Standard General making several acquisition attempts over the years. The initial bid in 2022 was at $38 per share, followed by a lower offer of $15 per share earlier this year. This lower bid faced criticism from Bally’s investor K&F Growth Capital, which accused Soo Kim and Standard General of attempting to acquire Bally’s at a fraction of its fair value, leveraging Bally’s already stretched balance sheet.

The final agreed-upon offer stands at $18.25 per share, representing a 71 percent premium on the volume-weighted average price per share as of 8 March, 2024, the last trading day before the initial cash acquisition proposal of $15.00 per share. This premium underscores the value and potential that Standard General sees in Bally’s.

As part of the merger, Bally’s will combine with The Queen Casino & Entertainment (QC&E), a regional casino operator majority-owned by Standard General. This strategic move will add four complementary properties to Bally’s existing portfolio of 15 domestic casino properties, enhancing geographic and market diversity.

Robeson Reeves, CEO of Bally’s, (pictured above), expressed optimism about the merger, stating, “The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio. With QC&E’s development pipeline recently completed or already well underway, we see a path toward additional revenue and EBITDAR growth and value accretion as those projects are completed in 2025. We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision.”

The transaction values Bally’s at approximately $4.6 billion in enterprise value. Under the Securities Act of 1934, the combined company will remain a publicly traded registrant, allowing Bally’s stockholders to retain their stock in a rollover election to the combined company.

Soo Kim, Managing Partner of Standard General, highlighted the benefits of the merger for Bally’s stockholders, stating, “The transaction provides Bally’s stockholders with a significant cash premium along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline. The addition of the complementary QC&E assets builds upon the Company’s attractive growth profile. We look forward to working with the Board of Directors and the Company’s senior management team as they continue to execute on their business plan.”

This merger comes on the heels of Bally’s securing $2.07 billion in funding for its Chicago Casino and Hotel Tower, further solidifying its position in the market and paving the way for future growth and expansion.

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China’s Supreme People’s Court (SPC) has intensified its crackdown on cross-border gambling, citing the case of Alvin Chau (pictured above) and his Suncity Group as a prime example of the industry’s harmful impact. The court has emphasised that such operations result in massive capital outflows and pose significant threats to social stability.

SPC highlighted the escalating problem of offshore casinos and online gambling platforms targeting Chinese citizens. These operations have facilitated the transfer of billions of yuan out of the country, fuelling concerns about economic security.

The Suncity Group, once a dominant force in Macau’s gaming industry, was identified as a key player in this illicit network. The group operated VIP rooms in multiple Macau casinos and established online gambling platforms in the Philippines and other jurisdictions. With a vast network of agents and customers, Suncity was instrumental in funnelling billions of yuan out of China.

Alvin Chau, the group’s founder, was arrested in 2021 and subsequently sentenced to 18 years in prison for illegal gambling and organised crime. The court ordered him to pay MOP$25 billion (US$3.2 billion) in compensation.

To combat this growing threat, the Chinese courts have handed down severe penalties to gambling organisers, ringleaders, and repeat offenders. Recent cases include a life imprisonment sentence for a mafia-style gang leader involved in cross-border gambling and human trafficking, as well as a seven-year prison term for the head of a gambling ring that amassed billions of yuan in illicit profits.

The SPC has stressed the importance of disrupting the financial networks used by these criminal organisations. By targeting these groups’ leaders and key members, authorities aim to dismantle their operations and deter others from engaging in similar activities.

As China continues to tighten its financial security and maintain social order, the crackdown on cross-border gambling is expected to remain a top priority for law enforcement and the judiciary.

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The operations of Genting Malaysia in the United States are projected to deliver stronger earnings in the second quarter of 2024, according to a recent report by Phillip Capital Research. In 2023, the leisure and gaming business in the US accounted for approximately 18 to 20 percent of Genting Malaysia’s total revenue and EBITDA, highlighting its significance within the group’s financial performance.  

According to a report by The Star, Genting Malaysia’s New York-based video gaming machine (VGM) facilities, including Resorts World New York City and Resorts World Hudson Valley, have reported notable growth. In the second quarter of 2024, these facilities saw a combined net win growth of 5.5 percent year-on-year (y-o-y), outperforming New York state’s overall growth rate of 4.3 percent.   

The standout performer was Resorts World Hudson Valley, which experienced a 19.4 percent y-o-y increase in net wins. This strong performance has led to an expansion of VGM’s market share by 0.6 percentage points y-o-y.  

Despite these gains, Resorts World Catskills owned by Genting Empire Resorts faced a decline in gross gaming revenue (GGR) of about 8 percent y-o-y in the second quarter of this year. This drop was attributed to reductions in slot and table game GGR.   

With GGR remaining flat quarter-on-quarter, Empire Resorts’ EBITDA for 2Q24 is expected to be similar to the first quarter, at around $3 million (€2.7 million). However, the overall performance of Genting Malaysia’s US operations is anticipated to improve, maintaining their crucial contribution to the group’s revenue and EBITDA.  

Phillip Capital Research also noted positive developments regarding the New York State Gaming Facility Location Board’s updated timeline for the request for applications for three new casino licences. This update is a potential catalyst for re-rating Genting Malaysia’s stock. The application deadline is June 27, 2025, with a decision expected by December 1, 2025, and the licence to be awarded by December 31, 2025. This timeline provides a clearer path for Genting Malaysia’s future operations in New York, potentially adding significant EBITDA contributions in the coming years.  

Given these insights, Phillip Capital Research maintains a “buy” recommendation for Genting Malaysia, with a target price of RM3.45. The brokerage highlights Genting Malaysia’s attractive 6.8 percent dividend yield and suggests that investors accumulate shares during periods of price weakness. The stock is considered to trade at an undemanding 6.6 times the estimated 2025 enterprise value-to-EBITDA, making it an appealing investment in the leisure and gaming sector. 

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