Genting Secures NYC Casino License Amid Malaysia Regulatory Risks

Genting Group has secured a New York City casino license, marking a significant expansion into one of the world's most competitive gaming markets. The Malaysian conglomerate, along with Steve Cohen and Bally's Corp., was awarded gambling permits by New York's Gaming Facility Location Board on Monday.

The approvals are expected to be finalized by December 31.

The license will allow Genting to transform its Queens slot machine facility into a $5.5 billion Las Vegas-style casino resort with a 500,000-square-foot gambling floor and 800 table games. This marks a strategic pivot for the company as political and religious headwinds in Malaysia threaten its domestic operations.

New York's decision follows a decade-long licensing process aimed at stimulating economic growth and generating significant tax revenue. The state projects gaming-related tax revenue of $7 billion between 2027 and 2036, along with $1.5 billion in licensing fees and additional tax revenue according to projections.

A Strategic Diversification Amid Malaysian Headwinds

The New York expansion comes as religious conservatism grows in Malaysia, where gambling is largely forbidden under Islamic law. Prime Minister Anwar Ibrahim has rejected new casino applications, and the rising influence of Islamic parties has raised the possibility of stricter restrictions on Genting's existing operations according to analysts.

Genting's founder, Lim Kok Thay, has been navigating a shrinking political space for gaming in Malaysia. The conglomerate, which started with a single casino in the 1970s, now seeks to buffer its risks by entering the U.S. market. Analysts have raised earnings forecasts for Genting Malaysia Bhd., anticipating a fourfold increase in net profit by 2030.

The company's stock rose early Tuesday, though gains were tempered by the end of the day. The expansion into New York is expected to deliver billions in new revenue and diversify Genting's geographic exposure amid uncertainties in its home market.

The New York Casino Landscape and Competitive Bids

Genting will join Steve Cohen and Bally's Corp. in operating a trio of new casinos across New York City. Cohen, who owns the New York Mets, will develop a $7.5 billion casino near Citi Field in Queens. Bally's plans to build a $4 billion casino in the Bronx, with a facility set to open at a site previously developed by Donald Trump.

The three approved projects are expected to transform parts of Queens and the Bronx with entertainment, employment, and nightlife opportunities. The Gaming Facility Location Board emphasized that each proposal was selected based on economic impact, brand strength, and community benefits according to board statements.

Each casino developer has pledged to create jobs and support local hiring. The board noted that all three projects would generate billions in tax revenue and offer a robust return on investment for the state.

Investor Optimism and Analyst Predictions

Analysts view Genting's New York casino as a major catalyst for its long-term financial performance. Nomura analysts described the selection as a positive development and highlighted Genting's bid for a 30-year license due to its higher licensing fee and tax rates.

Malayan Banking Bhd. forecasts Genting Malaysia's net profit to reach 1.93 billion ringgit by 2030. That would be a significant jump from current levels and indicate strong investor confidence in the company's future.

The market has already reacted with modest gains, and further optimism is expected as construction and licensing processes move forward. Genting's expansion into the U.S. gaming market signals its confidence in the global demand for high-end casino experiences according to market analysts.