Genting Malaysia Berhad (GENM) has proposed a deal to take over full ownership of New York casino and mobile sports betting operator Genting Empire Resorts.

GENM currently owns a 49 per cent membership interest in Empire, operator of Resorts World Catskills in New York City, Resorts World Hudson Valley, and Resorts World Bet, which operates mobile sports betting in the state.

The company is proposing to take over full ownership of Empire after entering into an agreement to acquire the remaining 51 per cent membership interest from Kien Huat Realty III Limited (KH) for US$41.0 million. This includes an intercompany loan of $39.7 million owed by Empire to KH.

The proposed acquisition is subject to regulatory approval from the New York State Gaming Commission, and is expected to be completed in the second quarter of 2025. It will be funded by GENM group’s internally generated funds entirely in cash.

“GENM group has participated in the New York gaming market for more than a decade,” said Genting Malaysia. “The proposed acquisition will allow GENM group to reinforce its position and grow its presence in the New York State gaming market to compete effectively in the northeastern US region.

“With full control over Empire, this will facilitate better positioning of the Resorts World brand through more effective cross marketing between Resorts World New York City (RWNYC) and Empire’s assets. Operating synergies between RWNYC and Empire will be enhanced further for both properties to grow their revenue by leveraging their customer databases and better cost control, resulting in an overall improvement in returns to both properties.”

Upon completion, Empire will become an indirect wholly-owned subsidiary of GENM.

Prior to the proposed acquisition, GENM’s total investment to-date in Empire, through Empire’s common stock and preferred stocks, has been $724.4 million. KH’s investment in Empire was $394.0 million.

GENM first acquired a stake in Empire in August 2019.

Shares in Genting Malaysia Bhd (KLSE:GENM) closed 2.35 per cent higher at RM1.74 per share in Kuala Lumpur earlier Wednesday.