An analyst at Maybank fears the casino will generate losses on opening next year.
US.- An analyst at Maybank has expressed doubts about the initial profitability of Resorts World Las Vegas, a $4.3 billion resort set to open in 2021.
Samuel Yin Shao Yang, associate director at Maybank, is doubtful that Genting Berhad’s casino and resort project will generate profits when it opens in summer 2021 due to the economic consequences of the Covid-19 pandemic.
He said in a note to clients: “The United States is now the country worst hit by the Covid-19 pandemic. If the Covid-19 pandemic in the United States does not stabilize by the time RWLV opens in the summer of 2021, we fear that it will generate losses.”
The property will have 3,500 rooms and 110,000 square feet of gaming space, but movement on the Las Vegas strip remains low, with reduced capacity policies in place and conferences postponed.
Since Genting owns and operates casinos in other parts of the US, and other countries around the world, profits from existing casinos could compensate for potential losses at the new site.
Yin Shao Yang added: “49 per cent-owned Resorts World Genting (RWG)has been performing better than Genting Malaysia expected. RWG reopened on 19 June 2020 with ~30,000 visitors daily but now welcomes ~45,000 visitors daily. RWG may have recouped 2/3 of its usual visitation.”
Expectations that the company will break even remain low, given the impact of the pandemic on the gaming industry.