Malaysian watchdog questions Genting over Empire Resorts deal
Genting Malaysia’s proposed acquisition of the remaining 51 percent stake in the US casino operator Empire Resorts has drawn scrutiny from the country’s financial watchdog, Bursa Malaysia. Reportedly, the $41 million (€38 million) transaction would provide the company full ownership of Empire, raising corporate governance concerns and questions about its commercial logic.
The Malaysian stock exchange regulator, , has issued 20 questions to Genting Malaysia to explain key aspects of the deal. The watchdog inquired Genting Malaysia over the rationale and fairness of its $41 million (€38 million) offer to acquire the remaining stake in Empire Resorts, requesting details on valuation basis, liabilities assumed, financial performance of both entities, strategic benefits, governance safeguards in the related-party deal, and the anticipated impact on shareholders, funding, and future business prospects.
Empire Resorts, which operates Resorts World Catskills and Resorts World Hudson Valley in New York, is currently a 49 percent associate of Genting Malaysia. The balance is held by Kien Huat Realty III Ltd, the investment arm of the founding Lim family, led by chairman Tan Sri Lim Kok Thay. Under the deal, Genting Malaysia would also take over the $39.7 million (€35.3 million) debt Empire owes to Kien Huat.
All eyes on the Empire deal
Genting Malaysia clarified that no separate valuation was carried out on Genting Empire Resorts LLC, the holding entity, as the focus was on Empire Resorts itself. The company cited an independent assessment by CBRE Securities, which valued Empire’s equity between $36.5 million and $46.9 million (€34 million and €43.6 million), using a mix of discounted cash flows, comparable market data, and precedent transactions.
If completed, this acquisition would amplify Genting Malaysia’s exposure to a business that has long struggled for profitability. In 2024, Empire Resorts reported a net loss of around $53.1 million (€49.4 million), a slight improvement from the previous year but still substantial. Annual revenue grew to $296.3 million (€275.5 million), up from $267.3 million (€248.6 million) in 2022.
Genting Malaysia insists that the deal will not saddle it with additional liabilities. It also outlined plans to drive revenue at Resorts World Catskills by tapping into new customer demographics and cutting costs.
Doubts loom over profit plan
Still, analysts remain cautious. PublicInvest Research downgraded the stock to a “trading sell”, warning that continued losses at Empire Resorts could weigh on Genting Malaysia’s broader recovery. The firm noted that Empire has been a persistent financial drain since Genting Malaysia acquired an initial stake in 2019 for $128 million (€119 million). Since then, total capital injections have reached $724.4 million (€673.7 million), widely viewed more as financial rescues than strategic growth investments.
Among 17 research firms tracked by Bloomberg, six rate Genting Malaysia as a “buy”, while four recommend “sell”. The average target price stands at RM2.16 (€0.42), but shares have fallen 23 percent in 2025. On Thursday, the stock closed at RM1.73 (€0.34), giving the company a market value of roughly €1.92 billion.
