Genting injects cash into Empire

By William Brown Updated
Genting injects cash into Empire

Malaysian casino operator Genting is injected $150 million into its US-based Empire Resorts.

Deal Street Asia reports the casino, amusement park and resort group said it has subscribed for up to $150 million of preferred stock of Empire, an indirect, wholly-owned subsidiary of Genting.

In March, the company announced an injection of $40 million into Empire, via a subscription agreement for Series G stocks.

This deal is for Series L stocks.

“In addition, Empire will require funds to fulfil its short-term debt obligations within the next six months,” the company said in a filing late on Friday, adding that Empire will continue with its long-term refinancing plans.

The company said US authorities had in March directed all gaming resort operations to be suspended to stop the spread of coronavirus, with Empire subsequently closing its entire gaming operations.

Genting UK outraged by continued casino closure

Genting UK has voiced its frustration at the UK government’s decision to keep casinos across England closed for a further two weeks.

European Gaming reported in August that Genting UK, a wholly-owned subsidiary of Genting Malaysia, described the move as a “whack-a-mole approach” in policymakers’ lockdown strategy to curb the spread of COVID-19.

Genting UK’s director of corporate assurance and regulatory affairs Jon Duffy was quoted as saying last Friday that the announcement flew in the face of government strategy pertaining to local lockdowns.

“After weeks of meticulous planning, we find it incredible that we have been given less than 24 hours’ notice as to this change of plan, which in itself has caused huge damage to the business,” Mr Duffy said.

“Significant numbers of staff have been brought back from furlough to prepare for the reopening, and this is devastating news for our entire team who now faces further worry and uncertainty.

“For every week we remain closed, it is costing us more than 1.5 million pounds. This is clearly not sustainable, with more jobs and livelihoods being put at risk with every last-minute change and delay.”

It has been reported that Genting UK claimed the UK government’s decision to delay all casinos in England from reopening “defied logic” and “seriously threatens the future of the entire industry.”

“We recognise that incredibly difficult decisions have to be made by all those in government, but we are absolutely confident our venues are as safe, if not more so, than a range of other businesses now currently operating,” Genting UK said.

Genting focuses on Yokohama project

It has been reported today that integrated resorts developer Genting Singapore has stated that it will focus its efforts and resources in Japan on Yokohama, Japan’s second largest city by population.

Casino Buzz reported in February that a Genting Singapore spokesperson said: “While Genting Singapore participated in the Osaka RFC; after reviewing and considering shareholder feedback, it did not register for the Osaka RFP, for which registration closed on February 14.”

The government of Japan is set to issue three licences for three integrated resorts in the country.

“Genting Singapore will continue to engage in the ongoing RFC by Yokohama, and focus efforts and resources on delivering a compelling proposal which will make Yokohama a must-visit tourism destination, with particular prominence in MICE and leisure,” the spokesperson said.

Local government ministers in Yokohama announced last week that it would be releasing its draft policy next month and that a period of consultation would follow, with a finalised basic policy expected by June 2020.

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