Genting Malaysia Bhd’s plan to fully acquire U.S.-based Empire Resorts Inc is drawing scrutiny from rating agencies, with both Moody’s Ratings and CreditSights flagging the move as “credit negative” despite strategic gains in New York’s gaming market.
Genting Malaysia announced it would purchase the remaining 51% stake in Empire Resorts—a company it already co-owns with the Lim family’s private investment vehicle—for US$41 million in cash, fully funded from internal resources. The deal, expected to close by the end of 2025, also includes the transfer of a US$40-million debt owed by Empire from the Lim vehicle to Genting Malaysia itself.
Moody’s cautioned that the acquisition increases Genting Bhd’s exposure to a loss-making asset, and that the related-party nature of the deal could weigh on governance perception. Empire Resorts reported a net loss of MYR252 million (US$59 million) in 2024, despite receiving US$750 million in equity support to date.
Empire owns and operates:
- Resorts World Catskills (a full-scale casino)
- Resorts World Hudson Valley (video lottery terminals)
- Resorts World Bet (mobile sports betting)
CreditSights acknowledged that the acquisition aligned with Genting’s long-standing support strategy for Empire, but warned it could worsen Genting Malaysia’s pro-forma net leverage by 0.3 to 0.4 times, raising concerns over related-party transactions.
Meanwhile, Maybank Investment Bank revised its earnings estimates for Genting Malaysia downward by 2% to 4% for FY2025–FY2027 due to the higher financial exposure. The move signals Genting’s continued bet on the long-term viability of New York’s gaming expansion, but analysts question whether Empire’s weak earnings outlook justifies the added risk—especially in a tightening financial environment.
