KUALA LUMPUR (Dec 2): Genting Malaysia Bhd’s (KL:GENM) share price fell on Tuesday despite the group being selected for one of three prized downstate New York commercial casino licences.

The stock closed 10 sen or 4.26% lower at RM2.25, giving the group a market capitalisation of RM13.36 billion.

This followed a rally after MGM Resorts International pulled out of the New York bidding race mid-October, sending GENM’s share price up to RM2.34. The stock is down 0.44% this year.

Parent Genting Bhd (KL:GENTING), which now controls over 70% in the group, also slipped, finishing seven sen or 2.08% lower at RM3.29, valuing it at RM12.75 billion. The stock is down 14.77% this year.

Trading in both stocks had resumed at 10am after a delayed opening to facilitate their announcements on the licensing outcome, but investors showed little enthusiasm for the news.

According to a Bursa Malaysia filing, Genting Malaysia’s wholly-owned subsidiary Genting New York LLC was selected by the New York Gaming Facility Location Board (GFLB) to advance to the final review stage with the New York State Gaming Commission (GC), which is expected to issue the licences by Dec 31, 2025.

Two other proposals — from Bally’s Corp and Queens Future LLC, a joint venture between New York Mets owner Steve Cohen and Hard Rock International — were also shortlisted.

Genting Malaysia is proposing a US$5.5 billion (RM23.19 billion) expansion to convert Resorts World New York City (RWNYC) from a racino into a fully integrated resort with expanded gaming floors, hotels, entertainment venues and non-gaming offerings.

CIMB Securities, in a research note on Tuesday, reiterated its “hold” call and RM2.55 target price, highlighting that key commercial terms — including licence duration, gaming tax rates and the final number of allowed table games and slot machines — remain unclear.

CIMB noted that the GFLB is particularly concerned that RWNYC is seeking to lower its proposed tax rates (slots: 56%, tables: 30%) to levels similar to those offered by other bidders — Metropolitan Park (slots: 25%, tables: 10%) and Bally’s Bronx (slots: 30%, tables: 10%). The board has urged the GC “to resist any back-tracking” on RWNYC’s initial commitments.

The GFLB also recommended that RWNYC be licensed for 4,635 slots and 534 tables, versus Genting Malaysia’s application for 6,000 slots and 800 tables, to preserve the quality of the visitor experience.

According to Bloomberg, Genting Malaysia currently has six "buy" calls, eight "hold" calls and no "sell" call, with a consensus 12-month target price of RM2.59.

The licensing outcome also follows Genting’s unsuccessful privatisation attempt for Genting Malaysia. The controlling shareholder secured 73.133% of Genting Malaysia shares at the close of its RM2.35-per-share offer on Dec 1 — below the 75% threshold required to delist the company.

Genting will therefore maintain Genting Malaysia’s listing status.

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