GGRAsia – GEN Malaysia unit to operate tribal casino in the U.S.

GEN Malaysia unit to operate tribal casino in the U.S.

Mar 16, 2016 Newsdesk Latest News, Top of the deck, World

A Native American tribe in Massachusetts in the United States said on Tuesday that a unit of Genting Malaysia Bhd would run the casino at the resort the tribe plans to open in 2017. The US$1-billion project (pictured in a rendering) is to be built in Taunton, located approximately 64.4 kilometres (40 miles) south of Boston, Massachusetts.

“Genting is putting up millions and millions and millions, and has never stopped believing in our goal,” Mashpee Wampanoag Tribal chairman Cedric Cromwell told the Massachusetts Gaming Commission at a special meeting on Tuesday, reported the Boston Globe newspaper.

Genting Malaysia – part of Malaysian conglomerate Genting Bhd – has recently reshuffled several U.S.-based subsidiaries, including Genting Massachusetts LLC.

Japanese brokerage Nomura said in a note on March 9 that it expected one of the consequences of the corporate reshuffle would be a “financing/operations deal” between Genting Malaysia and the Mashpee Wampanoag for a casino project from the latter.

“Genting will operate the tribal casino on behalf of the tribe,” Kevin C. Jones, president of Genting Massachusetts, was quoted saying in Boston Globe’s report.

“We will operate the casino while helping to build up the capacity of the tribe to operate it themselves. Our role is to work ourselves out of a job on behalf of the tribe,” Mr Jones added.

Genting Malaysia runs Resorts World Genting, Malaysia’s only casino resort, and operates casinos in the United States, the Bahamas and the United Kingdom. The firm operates Resorts World Casino New York City, which opened in 2011.

The Mashpee Wampanoag is a Native American tribe from Massachusetts that was officially recognised by the U.S. federal government in 2007. The Mashpee tribe plans to build the casino on land that has been designated as a Native American reservation, and therefore does not require the state’s permission.

The Massachusetts Gaming Commission is however still deciding on whether the Mashpee tribe will have exclusive rights to run a casino resort in Southeastern Massachusetts, said the Boston Globe.

Tribal leaders on Tuesday reportedly told the Gaming Commission they expect to break ground next month and plan to have a portion of the casino open for business by the summer of 2017.

Genting Massachusetts’ Mr Jones said the casino would open in June 2017, which would make it the first casino to offer full-scale gambling in the state. Work on the rest of the project, including three hotels, would continue to 2020.

Casino operators with Macau interests are also developing projects in the state of Massachusetts. Wynn Resorts Ltd – the parent company of Wynn Macau Ltd – has plans for a US$1.7-billion casino project in the city of Everett on the outskirts of Boston.

MGM Resorts International – the parent company of MGM China Holdings Ltd – broke ground in March last year on its US$950 million MGM Springfield project in Massachusetts.