Recent changes at Resorts World Las Vegas, including the establishment of its first board of directors, may simplify the corporate structure of its parent company, Genting Bhd, and positively impact the Strip venue’s credit profile.
CBRE analysts Colin Mansfield and Connor Parks recently commended the appointments of Jim Murren as chairman and Alex Dixon as chief executive officer in a new report. Genting announced last week that the board is already in place and Dixon will assume his role on January 16.
The CBRE analysts believe that long-term, Mr. Murren could be pivotal in streamlining Genting Bhd’s U.S. strategy and structure. This could potentially consolidate multiple restricted groups under a unified capital structure, creating a singular U.S. operating strategy that integrates Las Vegas and New York assets.
Genting, a Malaysia-based conglomerate, has interests beyond the gaming industry. Its casino portfolio includes assets in Malaysia, Singapore, and the US, which largely operate as separate units. While there have been rumors of Genting listing its US assets in New York, it hasn’t materialized yet. Murren and Dixon may drive the streamlining of the company’s US operations.
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 the CEO of MGM Resorts International (NYSE: MGM). Dixon’s experience at Caesars Entertainment (NASDAQ: CZR) and MGM could also benefit Resorts World as it aims to simplify its corporate structure and increase market share in Las Vegas.
The CBRE analysts noted that the appointments of Dixon and Murren are “credit positive” for Resorts World Las Vegas, emphasizing that both executives are adept at building top-tier teams. Additionally, Murren’s leadership at Resorts World Las Vegas could be beneficial as the operator addresses regulatory issues related to anti-money laundering (AML) violations. The casino hotel is likely to face financial penalties from the state of Nevada to resolve allegations that a former executive allowed illegal bookmakers to launder money at the property.
Mansfield and Parks suggested that Murren could provide the stability Resorts World needs to navigate these regulatory challenges. They concluded, “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 August 2023 complaint related to AML and illegal gambling activities.”
