Published on: December 10, 2024, 03:00h.
Last updated on: December 10, 2024, 03:00h.
Recent developments at Resorts World Las Vegas, such as the establishment of its inaugural board of directors, may streamline parent company Genting Bhd’s corporate structure and have a positive impact on the credit profile of the Strip venue.
According to CBRE analysts Colin Mansfield and Connor Parks, the appointments of Jim Murren as chairman and Alex Dixon as CEO are commendable. Genting announced the appointments last week, with the board already in place and Dixon set to assume his role on Jan. 16.
Long-term, we believe Mr. Murren could play a key role in simplifying Genting Bhd’s U.S. strategy and structure, potentially unifying multiple restricted groups under a cohesive capital structure, and consequently, a singular U.S. operating strategy that truly integrates Las Vegas and New York assets,” stated the CBRE analysts.
Headquartered in Malaysia, Genting operates in various industries beyond gaming. While its casino holdings encompass properties in Malaysia, Singapore, and the US, these assets generally operate independently. There have been discussions about Genting listing shares in New York to reflect its US assets, and Murren and Dixon may work towards consolidating the company’s US operations.
Murren’s Potential Impact on Resorts World Las Vegas
Murren joined Resorts World Las Vegas following his tenure as chairman of the General Commercial Gaming Regulatory Authority (GCGRA) in the United Arab Emirates (UAE).
Prior to this role, he served as CEO of MGM Resorts International (NYSE: MGM). Together with Dixon’s experience at Caesars Entertainment (NASDAQ: CZR) and MGM, their expertise could prove beneficial as Resorts World aims to streamline its corporate framework and increase market share in Las Vegas.
“Long-term, we believe Murren could play a key role in simplifying Genting Berhad’s U.S. strategy and structure, potentially unifying multiple restricted groups under a cohesive capital structure, and consequently, a singular U.S. operating strategy that truly integrates Las Vegas and New York assets,” added the CBRE analysts.
The analysts indicated that Dixon and Murren’s appointments are “credit positive” for Resorts World Las Vegas, noting their proficiency in assembling top-tier teams.
Additional Benefits of Murren’s Leadership
The CBRE analysts also highlighted that Murren chairing Resorts World Las Vegas could be advantageous as the operator addresses regulatory challenges related to anti-money laundering (AML) violations. The casino hotel is expected to face financial penalties from the state of Nevada to resolve allegations of facilitating illegal gambling activities on the premises.
Mansfield and Parks suggested that Murren could provide the stability Resorts World needs to navigate through these regulatory issues.
Murren is highly respected by regulators and leads the gaming regulatory body in the UAE, which could aid in addressing the Nevada Gaming Control Board’s complaint from August 2023 concerning AML and illegal gambling activities,” concluded the analysts.