Maybank bullish on Genting’s New York casino chances; Mohegan Sun rebuffs Genting’s casino claims

Genting Malaysia is the front-runner to win one of the first casino licenses in New York according to Maybank.

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Researches at Maybank Investment Bank point to the financial capabilities of the casino giant, specifically because it offers a higher rate of investment than any other bidder. Genting also has the capacity to offer the most jobs at higher salaries for its resort and casino proposal. It even promised the New York Gaming Commission that it would pay a $450 million license fee, well north of the $70 million license fee the New York Gaming Commission requires for every bidder in New York’s Dutchess County and Orange County.

The Malaysian-based banking and financial group also estimates that a casino license in New York would “accrete at least a net of 47 sen” that can be added to the company’s current RM4.70 ($1.44) stock target price.

In preparation of a potential casino license, Maybank has upgraded Genting’s stock climate from “hold” to “buy” as it anticipates a 10% target price increase to RM5.15 ($1.58) in the event the casino giant bags one of the first casino licenses in New York.

“In the unlikely event that Genting Malaysia does not win a single licence, our base case sum-of-parts based target price of RM4.70 still offer a 13% upside,” Maybank added.

The New York Gaming Commission plans to announce the first set of winners next month at the latest.

Meanwhile, Mohegan Tribal Gaming Authority CEO Mitchell Grossinger Etess debunked Genting’s assertion that casinos could still thrive despite being in close proximity with each other. On the contrary, Etess pointed out that a casino project in the Catskills would not “get off the ground” if there’s another one closer to New York City, more specifically Orange County

Mohegan Sun has a live proposal to build a $550 million destination casino in the Catskills, one that includes a 252-room hotel, seven restaurants and a golf course. However, the company isn’t completely bent on the idea of developing a casino in the economically challenged Catskills region if the state allows a casino in Orange County.

Etess’ company isn’t the only one who holds that thought. Two developers—Trading Cove New York and Foxwoods Resorts Casino—have abandoned their Catskills proposals because of the obstacles poised by an Orange County casino.

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