Genting Berhad announced on 18 Aug that the Nevada Gaming Control Board (NGCB) had filed a series of allegations against Resorts World Las Vegas (RWLV) for breaches in Anti-Money Laundering (AML) laws.

Broking house CGS said as a base case, there will likely be fines imposed but, at the more extreme level, there is also a risk of its licences being revoked or suspended; The group has proposed the appointment of a supervisor in a monitoring role in this scenario. Resorts World Las Vegas is not a significant contributor to the overall Genting's group EBITDA at c.8% for 1H24. At the analyst briefing yesterday, management did not provide any further clarity except that discussions with NGCB are ongoing.

In the results announcement, Genting disclosed that so far no charges or claims have been brought by the US Attorney's Office. For 2Q24, RWLV's hotel occupancy/average daily rate (ADR) were 89%/US$257 (vs. 89%/US$298 in 1Q24), with 2Q24 EBITDA of US$50m (1Q24: US$40m, 4Q23: US$58m) on the back of revenue of US$218m (vs. 1Q24: US$231m, 4Q23: US$241m).