Resorts World Las Vegas Changes Improve Credit Outlook

Posted on: December 10, 2024, 03:00h. 

Last updated on: December 11, 2024, 10:05h.

Todd Shriber Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Recent changes at Resorts World Las Vegas, including the formation of its first board of directors, could simplify parent Genting Bhd’s corporate structure while being positive for the Strip venue’s credit profile.

Nevada casinos GGR Las Vegas Strip
Resorts World Las Vegas. Analysts said the hiring of Jim Murren as chairman is credit-positive. (Image: Getty)

That’s the take of CBRE analysts Colin Mansfield and Connor Parks, who in a new report, lauded the hiring of Jim Murren as chairman and Alex Dixon as chief executive officer. Genting made the announcement last week, noting the board is already in place and that Dixon will step into his role on January 16.

Long-term, we think Mr Murren could be instrumental in simplifying Genting Bhd’s U.S. strategy and structure, possibly bringing together multiple restricted groups under a unified capital structure, and thus, singular U.S. operating strategy that truly integrates Las Vegas and New York assets,” observed the analysts.

Malaysia-based Genting is a sprawling conglomerate that includes interests outside of the gaming industry. Its casino portfolio includes assets in its home country, Singapore, and in the US, but those assets mostly function as separate units. There have been rumors of Genting listing shares in New York that would reflect its US assets, and while that hasn’t happened as of yet, it’s possible Murren and Dixon will engineer a streamlining of the company’s US operations.

Murren Could Be an Asset for Resorts World Las Vegas

Murren joined Resorts World Las Vegas after serving as chairman of the General Commercial Gaming Regulatory Authority (GCGRA), the first gaming regulator in the United Arab Emirates (UAE).

Previously, he was chief executive officer of MGM Resorts International (NYSE: MGM). That coupled with Dixon’s stints at Caesars Entertainment (NASDAQ: CZR) and MGM could be advantageous as Resorts World looks to simplify its corporate structure and attempt to gain market share in Sin City.

“Long-term, we think Murren could be instrumental in simplifying Genting Berhad’s US strategy and structure, possibly bringing together multiple restricted groups under a unified capital structure, and thus, singular US operating strategy that truly integrates Las Vegas and New York assets,” added the analysts.

The analysts said the additions of Dixon and Murren are “credit positive” for Resorts World Las Vegas, adding that the executives are well-versed in hiring top-tier teams.

Murren Could Bring Other Benefits

The analysts also pointed out that Murren chairing the Resorts World Las Vegas could be advantageous as the operator works through regulatory woes stemming from anti-money laundering (AML) violations. The casino hotel is likely to face financial penalties from the state of Nevada to settle allegations that a former executive knowingly allowed illegal bookmakers to cleanse ill-gotten gains at the property.

Mansfield and Parks said Murren could be the calming influence Resorts World needs to get through the regulatory issues.

Murren is “highly regarded by regulators and is leading the gaming regulatory body in the UAE, which should help navigate the Nevada Gaming Control Board’s Aug. 2023 complaint related to AML and illegal gambling activities,” concluded the analysts.