Resorts World Las Vegas (RWLV) is expected to receive significant backing from its parent company, Malaysia’s Genting Bhd, as it faces a disciplinary complaint from the Nevada gaming regulator. According to S&P Global Ratings, RWLV will benefit from “extraordinary support” from Genting to address and resolve the issues raised by regulators.
The complaint alleges that RWLV, along with its parent company and affiliates, failed to meet its obligations as a Nevada gaming license holder. Specifically, the company is accused of allowing individuals with suspected or known connections to illegal activities to gamble on its premises.
In a non-rating commentary, S&P noted Genting’s long-standing experience in the gaming industry, with over five decades of operations across various jurisdictions. The rating agency also highlighted Genting’s strategic interest in strengthening its presence in the US gaming market, emphasizing that RWLV is a key player in this expansion.
S&P expects RWLV to work closely with Nevada regulators to address the complaint. The company’s BB+ rating, which comes with a stable outlook, reflects its crucial role within the Genting group. S&P believes RWLV will receive robust support from Genting Bhd in nearly any circumstance.
The stable outlook for RWLV mirrors that of its parent company, with expectations of stable operating performance. S&P also forecasts 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, possible penalties include fines and actions against the gaming licenses of the property operators. This situation arises after the departure of former RWLV President and COO Scott Sibella in September 2023. Sibella pled guilty in January 2024 to violating anti-money laundering (AML) laws during his tenure as president of MGM Grand. Both MGM Grand and The Cosmopolitan settled similar charges for a total of $7.45 million earlier this year.
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