GenM could see upsides from developments in US

KUALA LUMPUR: Genting Malaysia Bhd could stand to benefit from several developments taking place in the US, says Affin Hwang Capital research.

In a note, the research house said the US House Committee on Natural Resources is chairing a legislative hearing on a bill that could reverse an earlier court decision,  which could pave the pay for the Mashpee tribe to build a casino on contested land, said Affin Hwang.

GenM had previously written off its RM1.8bil investment in its Mashpee notes in its 3Q18 results owing to a court ruling that the tribe did not meet certain requirements to allow it to have a tract of land in trust for an integrated gaming resort development. 

Meanwhile, the research house said GenM's Resort World Casino New York could play a role in the US$10bil sports betting market, depending on the outcome of a senate bill.

In Florida, the state is negotiating with the Seminole Tribe on their “exclusive” rights to offer banked card games in the state, which contributed USD$350m/year to the state. 

"The state could expand gaming if the negotiation falls through to fill the budget gap, potentially benefiting GENM, in our view," said Affin Hwang.

The research house said any favourable outcome could improve investor sentiment on GenM, which remains its top pick for the gaming sector. 

It maintained its buy call with an unchanged target price of RM3.80.