January 11, 2024 2 min read

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Genting Malaysia Confirms Plans to Inject $100M into Empire Resorts

Details regarding the proposed equity injection emerged through a filing with the Bursa Malaysia Securities on Wednesday

In an unexpected move, the leading leisure and hospitality business, Genting Malaysia Berhad (GENM), announced its plans to inject some $100 million into Empire Resorts, one of its US-facing subsidiaries. Details regarding the newly proposed investment emerged on Wednesday, January 10, 2024, in a filing with the Bursa Malaysia Securities by the company.

Upon announcing the proposed $100 million investment, Genting Malaysia confirmed that it will be completed through its indirect wholly-owned subsidiary, Genting ER II LLC. The company confirmed it entered into a Subscription Agreement to subscribe up to $100 million of Series M Preferred Stock of Empire.

Additional details released by Genting Malaysia reveal that some $42 million of the investment will be used as a working capital. On the other hand, some $58 million would be used to fully repay an existing bank facility.

Genting Malaysia continues to grow its investment in Empire Resorts. With the first such investment dating back to August 2019, the total surpasses $700 million.

The Board wishes to announce that GENM’s indirect wholly-owned subsidiary, Genting ER II LLC (“GER II”), a Delaware company, had on 10 January 2024 (United States Eastern date/time) entered into a Subscription Agreement to subscribe for up to $100 million (or approximately RM465 million) of Series M Preferred Stock of Empire (“Series M”),

reads a filing with the Bursa Malaysia Securities

Proposed Equity Injection to Propel the Company’s Growth and Expansion

Currently, Empire is in charge of operating mobile sports wagering in New York after entering the market back in March 2022. Additionally, the company operates Resorts World Hudson Valley as well as Resorts World Catskills, two casino and entertainment locations.

According to Genting Malaysia, the proposed equity injection would help Empire “optimize its capital structure by reducing financial leverage and correspondingly interest expense at Empire and/or GERL.” Moreover, the investment would enable the company to strengthen its Resorts World Catskills operation while positively impacting Resorts World Hudson Valley as well.

Ultimately, the proposed equity injection is expected to strengthen Gentin Malaysia’s growing presence within the gambling sector and allow it to continue expanding in strategic markets such as New York and across the Northeastern US vertical.

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Jerome is a welcome new addition to the Gambling News team, bringing years of journalistic experience within the iGaming sector. His interest in the industry begun after he graduated from college where he played in regular local poker tournaments which eventually lead to exposure towards the growing popularity of online poker and casino rooms. Jerome now puts all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.

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