Resorts World Las Vegas (RWLV) is expected to receive ‘extraordinary support’ from its parent company, Malaysia’s Genting Bhd, according to S&P Global Ratings.
This follows a disciplinary complaint filed by the Nevada gaming regulator against RWLV, its parent company, and affiliates. The complaint accuses the company of failing to fulfill its responsibilities as a holder of a privileged Nevada gaming license by allowing individuals with suspected or known ties to illegal activities to gamble on its premises.
In a non-rating commentary, S&P highlighted that the Genting group has over five decades of experience in gaming operations across various jurisdictions. The group also holds strategic importance in expanding its presence in the US gaming market. S&P expects RWLV to collaborate with regulators to address and resolve the issues raised.
RWLV’s current BB+ rating with a stable outlook reflects its highly strategic importance within the Genting group. S&P believes that RWLV will receive extraordinary support from Genting Bhd under almost any foreseeable circumstances.
The stable outlook for RWLV aligns with that of its parent company, reflecting expectations of ‘stable operating performance’. The rating agency also anticipates that RWLV’s market position will help maintain a funds-from-operations-to-debt ratio above 30 percent over the next two years.
Regarding the complaint, the report mentions that possible penalties include monetary fines and actions against the gaming licenses of the ownership and property operators.
In January 2024, MGM Grand and The Cosmopolitan, both Las Vegas casinos, agreed to pay a total of $7.45 million to settle charges involving alleged violations of AML laws and the Bank Secrecy Act.
This complaint also comes after the departure of former RWLV President and Chief Operating Officer Scott Sibella in September 2023. Sibella pleaded guilty on January 24th, 2024, to violating AML laws at MGM Grand, where he served as president until February 2019. He joined RWLV afterward.
