Published on: October 17, 2024, 04:31h.
Last updated on: October 17, 2024, 04:31h.
A legal case against Genting by its partner in Resorts World Bimini, RAV Bahamas, might affect the casino giant’s attempt to obtain a New York casino license.
According to analyst CGS International Research, there are concerns about a disciplinary complaint against Genting from the Nevada Gaming Control Board (NGCB), alleging that individuals connected to illegal sports betting were allowed to gamble at Resorts World Las Vegas.
Genting has been operating the closest casino-like establishment to New York City for years. Resorts World New York City in Queens is authorized to offer video lottery terminals (VLTs) and electronic table games.
The company from Malaysia has promised to pay $1 billion in taxes if it secures one of the three casino licenses for full-scale gaming in the downstate New York region.
Serious Allegations
The lawsuit filed by RAV in the Southern District of Florida accuses Genting of using fraudulent accounting methods that have burdened Resorts World Bimini with $885 million in debt. RAV claims that these debts were incurred by other entities within Genting.
RAV alleges that it has not received any profits from the venture due to a complex network of subsidiaries created by its partner to provide services to its resorts.
The lawsuit claims, “Genting Group’s corporate structure, filled with numerous subsidiaries, helps conceal financial misconduct and manipulation of projects in the US and globally.”
RAV is seeking damages exceeding US$600 million. Genting has refuted the allegations, calling them baseless, and stated that it will vigorously defend itself.
Regulatory Concerns
However, these legal issues come at a precarious time for Genting, following the NGCB complaint just two months ago regarding compliance failures.
The NGCB statement alleges, “Resorts World allowed individuals with ties to illegal bookmaking and organized crime to gamble at the establishment.” The regulator is expected to impose substantial fines on Genting for violating the Nevada Gaming Control Act.