Leading investment bank ‘unsure’ about upcoming Resorts World Las Vegas Casino’s success
Maybank Investment Bank Berhad, one of Asia’s leading investment banks, is not sure about the future prospects of success for popular casino operator Genting Malaysia Berhad’s upcoming Resorts World Las Vegas Casino in southern Nevada.
Genting Malaysia, the owner and operator of casinos in almost all parts of the world, has plans to spend $4.3 billion to build Resorts World Las Vegas gambling and entertainment facility in the Sin City, the world’s second most popular gaming hub behind Macau. The project is under development, and the developer has already spent approximately $2.4 billion on the project to date.
The question mark on the success of the multi-billion facility was put in the assessment report written by Maybank Investment Bank Berhad’s analyst Samuel Yin Shao Yang. In the report, Yang underlined that the entire casino project is facing the risk of becoming a white elephant because of the adverse impact of the ongoing corona virus pandemic.
Yang detailed that the investment bank did not envision the under-construction Resorts World Las Vegas casino project breaking even in the near future. The analyst blamed lack of international gamblers and various Covid-19 restrictions for the project’s purported failure in achieving break-even point in the near future.
In the newly-published report, Yang stated, “The United States is now the country worst hit by the coronavirus pandemic. If the coronavirus pandemic in the United States does not stabilize by the time Resorts World Las Vegas opens in the summer of 2021, we fear that it will generate losses.”
Being constructed on an 87-acre plot of land close to the northern end of the popular Las Vegas Strip, Genting Malaysia’s Resorts World Las Vegas property will feature 110,000 square feet casino equipped with a large number of slot machines, table games etc. alongside two hotel towers. To be individually marketed under the Hilton & Conrad brands, the two hotel towers will feature state of the art 3,500 rooms. In addition, it will offer casual as well as high-end restaurants, an in-house spa, a large fitness center and nearly 350,000 square feet of convention space, a 5,000-seat theater, a 220,000 square feet pool complex and a Chinese garden surrounding a 30,000 square feet lake.
Defying optimism surrounding Resorts World Las Vegas, Yang granted a ‘nil value’ score to the under-construction casino resort score and downgraded Genting Malaysia Berhad stock’s rating from ‘buy’ classification to ‘hold’ classification.
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