Asian gaming dollars flowing back West, lead by Genting

Published in: Latest Intelligence By Frank Catania*

 
After more than a decade of U.S. casino investment flooding into Asia, creating unprecedented profits for operators, some Asian companies are looking the other way, seeking opportunities in the U.S. as the economy improves and Asian visitor numbers grow.
The latest annual survey of visitation and spending compiled for the Las Vegas Convention and Visitors Authority by GLS Research pointed to a rising number of Asian visitors, with a growing number travelling to the city just to gamble.
It found that 20 percent of visitors to the U.S. gambling hub came from foreign countries in 2013, up from 17 percent in 2012. The research doesn’t specify country of origin, but it did say that in terms of ethnicity, the number of Asians visiting rose to 12 percent from 9 percent, the only category to show an increase.
The number of first-time visitors whose sole reason for visiting was to gamble surged from 8 percent to 15 percent.
A recent report by CLSA also said it expected the number of Chinese visitors to the U.S. to triple by 2020, as incomes increase and travellers from the mainland grow more experienced and willing to venture further afield than Macau and Hong Kong. Those tourists are also among the top spenders after Indians at about $4,400 a trip, the firm said.
One of the Asian gambling giants most active in seeking U.S. expansion is Malaysia’s Genting Bhd.
Genting is not new to people in the gaming industry, but the gaming company is making a big splash with its commitment to invest upwards of $10 billion in the next five years from the Eastern U.S. to Nevada to Korea.
While perhaps not as well known as some of the biggest U.S. casino company names such as MGM Resorts, Caesars Entertainment, Las Vegas Sands and Wynn Resorts, the Genting Group has been involved in managing, marketing and operating casinos throughout the world for over 26 years.
And the company’s investment plans indicate a desire to increase their investment in and ownership of the worldwide gaming market. Their most recent casino investment plans include projects in Vietnam, Macau, Sri Lanka, Taiwan and possibly Japan.
The company is pushing for three projects in three states across the U.S., in New York, Florida and Nevada.
In New York, the State Legislature has authorized four new casino licenses.Two of those would be located in the Hudson Bay/ Catskill region.
Genting already operates the Aqueduct Racetrack located in the Borough of Queens, which is a gambling slot "palace" with over 5,000 video slots. But recent New York State casino legislation will prevent Aqueduct from having live table games for seven years.
Instead, Genting recently submitted a casino license application for a $750 million resort in the small town of Tuxedo, in the very southernmost portion of Orange County, just minutes from northern New Jersey and an hour’s drive from Manhattan.
The project would be located in Sterling Forest; “The Sterling Forest Resort” would be located at the Tuxedo Ridge Ski Center in Tuxedo and contain a 400-room hotel, a ski resort in the winter and a 125-acre "Forest Garden" which would complement New York's Renaissance Fair.
Genting claims the resort will create 2,000 jobs and double the tax base of the Village of Tuxedo. On May 12, 2014, the Tuxedo town board approved the Genting casino complex by a 3-2 vote. This town’s approval was one of the necessary conditions in obtaining casino approval. Local support makes up 20 percent of the criteria in the state’s evaluation as to who will get the two casino licenses in the Catskills/Hudson Valley region.
It is estimated that the project will cost between $400 million - $750 million.
However, not everyone in Tuxedo is in favor of the project. Opponents said the Sterling Forest Resort with a casino and other attractions would adversely affect the quality of life that is now enjoyed in the town. Some opponents go so far as to say that the project will bring an increase in crime and require a substantial increase in municipal services.
Genting is also planning to spend $3-4 billion to build a new tourist resort in Las Vegas, Nevada. In its presentation to the Nevada Gaming Control Board, Genting representatives stressed that its development will attract new customers to the resort town, create an additional 8,500 jobs and produce $150 to $500 million annually in tax revenue.
The mega-resort would feature a 674 foot-high tower and a 50,000 square foot aquarium. The board unanimously approved a preliminary finding of suitability on May 7, 2014.
However, it hasn’t all been plain sailing in the U.S. for Genting, with a setback for its 5,000-room casino resort plans in Florida. It is uncertain whether Florida will pass casino enabling legislation, with a sticking point appearing to be Governor Rick Scott’s ongoing negotiations with the Seminole Indian tribe, which has seven gambling establishments and has a degree of exclusivity in the state.
The Native American tribes operating casinos in Florida and Disney, which has a giant resort in Orlando, have a great influence on what happens in the state regarding casino gaming.
Another name associated with a potential Las Vegas bid is James Packer’s Crown Resorts. In April, Australian media reported the company was interesting in bidding $2 billion for The Cosmopolitan of Las Vegas, which was being sold by Germany’s Deutsche Bank.
Crown didn’t comment and the property was eventually sold to private-equity firm Blackstone Group for $1.73 billion in May.
U.S. operators, keen to build on their Asia visitor base, have also in recent years invested in their Las Vegas properties to attract more Chinese high rollers, creating luxury salons with Chinese TV and Chinese delicacies on the menus.
– / –
Frank Catania is senior partner in Catania Gaming Consultants and counsel to the Law Firm of Catania & Ehrlich of New Jersey. Frank is an AGB Regulatory Advisor.

Bet365 awaits AUSTRAC investigation, results up for 23/24 financial year
_2025-01-07Paradise Ent. and Tangiamo sign global distribution agreements
_2025-01-07Most content removal requests target online gambling: Malaysia comms authority
_2025-01-07Clark International Airport welcomes 2.4M passengers in 2024, mostly international
_2025-01-07Nearly 60 workers fight their way out of sanctioned Cambodian casino complex
_2025-01-07Record $17.7 million Mark Six jackpot in Hong Kong split by two winners
_2025-01-07

Open in new window
View settings