KUCHING: Genting Bhd (Genting) is now a step closer to realising the Resorts World Las Vegas (RWLV) project, following Nevada Gaming Control Board’s recommendation of the project.
The research arm of Hong Leong Investment Bank Bhd (HLIB Research) noted that Nevada Gaming Control Board has reportedly recommended approvals of the sustainability officers, directors and shareholders, Genting’s registration as a public company and its interactive subsidiary for mobile gaming and a loyalty programme for the project in RWLV.
It added, the recommendation is currently pending the consideration of Nevada Gaming Commission on May 19 and among the licenses recommended for approval was an application from Genting Nevada Interactive Gaming to developing and manufacturing proprietary gaming machines and concepts.
“We are positive on the development of the news as Genting is now a step closer towards realizing the project.
“However, do note that the company still will need to apply for a full gaming license before RWLV can open (which was shared previously by management likely to be half a year before the target opening),” it opined.
The research team cautioned that Genting’s US$4 billion Chinese-themed resort in RWLV was unveiled in 2013 with 3000 rooms and 150,000 square feet of gaming space planned.
However, it pointed out that the progress of RWLV has stalled since its ground breaking last May after receiving a preliminary finding of suitability from the control board and commission two years ago due to revise of design and challenging economic environment.
“From the news article, we understand that construction work is likely to speed up targeting to open by end-2018 to beginning of 2019 once relevant licenses are obtained from the gaming commission which will likely be a game changer on the north end of the Strip,” it said.
Overall, HLIB Research maintained its ‘buy’ call on the stock. It said, “We continue to like Genting as it will benefit from the catalyst of various expansion plans from its subsidiaries while having limited downside given its diversified business, stable and cash rich position.”