Malaysian gambling giant Genting Group recently completed the full acquisition of Empire Resorts in the United States, purchasing the remaining 10% of shares for $80.7 million. This transaction marks Genting's official full ownership of this New York-listed company, further strengthening its layout in the North American market.
Strategic Layout and Market Considerations
This acquisition is an important move in Genting Group's internationalization strategy. Despite Empire Resorts currently being in a loss-making state, Genting values its strategic location in New York State. As one of the most densely populated states in the US, the gambling market has huge potential. Genting plans to integrate operations and leverage synergies with its other businesses to reduce overall operating costs.
Financial Impact and Market Reaction
Following the acquisition, Genting Malaysia's total debt will climb to 13.5 billion ringgit (approximately $2.87 billion), raising concerns among some analysts about financial sustainability. Market observers note that the lack of a clear roadmap for turning losses into profits may continue to pressure Genting. However, the management emphasizes that this is part of its long-term strategic investment, expecting to gradually improve the profitability of Empire Resorts through economies of scale.
Global Layout Strategy
As a leading integrated resort operator in Asia, Genting Group has operations in multiple markets worldwide, including Malaysia, the UK, the US, and Egypt. The full acquisition of Empire Resorts is a key step in deepening its market layout in the US. The group states that it will continue to focus on expansion opportunities in the North American market to enhance its global network of gambling resorts.
