Online sources recently revealed that Genting Casino’s plans to venture into the Canadian market have been put to a halt for the foreseeable future after its bid to secure a GTA gaming concession failed. If successful, the concession would have enabled Genting Casino to expand beyond the US borders for the first time.
Genting Casino managed to reach the final round of bidding after a series of tough initial bids. Five groups were selected for the final round including eventual winners Brookfield Business Partners and the Great Canadian Gaming Corps. The other two losing finalists were American group Caesars Entertainment and Canadian company Brookfield Asset Management. The Ontario Lottery and Gaming Corps acted as the judge.
The deal that was won by Brookfield Business Partners and the Great Canadian Gaming Cops will see these two operating the Great Blue Heron Casino, Ajax Downs and OLG Slots located in Woodbine. These 3 brick and mortar casinos are home to over 60 table games and 4,000 slot machines. The deal also stipulates that the bid winners are to redevelop the infrastructure of the Great Blue Heron Charity Casino together with the race track at the Ajax Downs grounds. The GTA gaming concession deal will run for a minimum of 22 years.
After rumors had broken out that the Great Canadian Gaming Corps won the casino concession, its stocks were temporarily halted by regulators awaiting official statements from the Ontario Lottery and Gaming Corps and the UOB Kay Hian Malaysian Research council.
What Does this Mean for Genting Casino?
The failure to secure the casino concession by Genting Casino has been a huge blow. The group had been pushing for a move to expand beyond the US borders for quite some time now and it viewed the Canadian GTA gaming concession as the best possible way to do so. The loss of the GTA gaming concession can however, be compensated by the fact that the group managed to secure another concession albeit with the confines of the US border. Genting Casino won the right to establish a new casino on the Las Vegas strip to the tune of $4 billion. This new operation will officially open its doors in 2020.
Speaking after announcing Genting Casino’s failure in winning the bid, UOB Kay Hian Malaysian Research stated that the whole Genting group will be waiting for Genting Casino to make its first foreign foray before other entities including Genting Malaysia does so. They stated that it was a consensus decision to reach as Genting Casino is currently way ahead in terms of valuation in comparison with Genting Malaysia and all the other subsidiaries. This then means Genting Casino is in a more suitable position to compete effectively against top competitors.
The share price of Genting Casino currently trades 7.8 times higher than Genting Malaysia. Though the share price for Genting Casino is likely to retrace downwards, Genting Casino still poses as the biggest competitor to other well-known brands as compared to other subsidiaries including parent company Genting Malaysia.
Speaking after the casino concession winners were announced, Vince Crisanti who is a counselor for Ward 1 in Woodbine, mentioned that the new operators responsible for running and developing the three venues of Ajax Downs, OLG Slots, and Great Blue Heron would supply new jobs into the economy. He stated that the sleeping towns of Canada are about to come to life, and that thousands of job seekers are to be employed along with a new development of housing in the mix. Kelly LaRocca of the Mississaugas of Scugog Island First Nation where the Great Blue Heron Casino is located, said the development will uplift aboriginal people of local communities through opening up employment opportunities.