- In early-December 2012, The Miami Herald reported that
Genting Malaysia Bhd (GenM) would stop a petition drive to get a casino
amendment on the 2014 ballot. GenM would leave it to the lawmakers instead to
decide on the future of gambling in Florida.
- It was reported that the new leadership in the legislature
plans to put gaming regulation on centre stage in the next two years, i.e.
spending the 2013 session examining options and waiting until 2014 to pass
substantial legislation.
- The Miami Herald quoted a lobbyist for Genting as saying
that the approach that the lawmakers are taking makes sense and Genting would
like to be a constructive player in it.
- It appears that the casino legislation in the state of
Florida would take a long time to come into fruition. As the casino legislation
also requires voter referendum, we reckon that the entire legislation, if any,
would only be passed in 2015F.
- As such, it would appear that the casino legislation could
be moving faster in the state of New York. Lawmakers are scheduled to debate on
the details of the casino bill in the coming months.
- In March 2012, lawmakers in New York amended the state
constitution to allow up to seven casinos. However, the law was unclear as to
how many new casinos would be allowed to open.
- In 2012, credits played at all of the racinos in the state
of New York amounted to US$27.7bil. Out of this, we estimate the market share
of “Resorts World New York” (RWNY) at 46%. In total, the racinos in the state
of New York enjoyed net wins of US$1.8bil in 2012.
- RWNY reported an average win per machine of US$372/day in
December 2012. Average win per machine was US$359/day in 4QFY12. This was 7%
lower than the average of US$387/day in 3QFY12 due to Super Storm Sandy, which
occurred in October.
- RWNY’s average win per machine was US$370/day in FY12F,
which was within expectations.
- We maintain a BUY recommendation on GenM for its resilient
casino earnings in Malaysia and the US. Newsflow would come in the form of
approval for new casinos in New York.
Source: AmeSecurities
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