The CEO of Genting Berhad said the financial performance at Resorts World Las Vegas will improve in time.
Two top executives from Genting Berhad, owner of Resorts World Las Vegas, are scheduled to appear Thursday for approval to serve on the casino’s Board of Directors. Genting Berhad CEO Kong Han Tan and Genting Plantations CEO Keon Hui Lim will be joined by fellow members on the board in Chair Brian Sandoval, former Nevada governor, and gaming attorney A.G. Burnett. The board was created in late 2024 to strengthen the company’s corporate governance and business strategy.
Tan, CEO since March, addressed the Gaming Control Board earlier this month about the property’s financial performance and the compliance issues that led to a $10.5 million fine, second largest in the state’s history, to settle a complaint regarding anti-money-laundering failures involving an illegal bookmaker. Tan said the investment in Las Vegas has progressed amid reports of its challenging financial performance since the property opened in June 2021.
“Growing pains are two of the words that come to mind,” Tan said. “We were the new kids in town, didn’t know people, and things didn’t pan out well. I think we swung into action and remedied that and spent more money. Genting Berhad has funded the deficits that Resorts World is facing. We continue to stand behind the project. We always regarded Nevada to be a core asset and core center. We have learned a lot from being in Nevada, and that knowledge can easily be replicated. Our other properties are in a much better state of governance and compliance than ever before. I don’t see that as a waste.”
Tan said they’re fortunate in finding Carlos Castro as the new CEO, who often works until 8 p.m. and sometimes stays at the property overnight. He said he was shocked Castro gets going so early in the morning as well.
“He’s pulling out all the stops to hold the ship together and keeping the employees together,” Tan said. “There’s nothing more important than making sure good people continue to feel a sense of belonging, and Carlos is doing a great job at that. The financial performance will come. We have a great asset and great team, and I think those financial performances will come. It’s a blip. We all accept it as a blip and look forward.”
Lim, who spends about 30% of his time on the Las Vegas operations, said he worked on the Resorts World Las Vegas project at the beginning and called it a “cornerstone of what we do at Genting Berhad in terms of entertainment.” He agreed there were growing pains at the foundation of the property.
“Last year there were a lot of headwinds,” Lim said. “It’s not due to the property itself, but industry wide, occupancy and average daily rates were a little challenging. However, we do see an encouraging resilience for our convention business. We’re still in the phase of stabilization and have yet to mature into our full potential of what Resorts World Las Vegas can become.”
Gaming Board member George Assad said Resorts World is on the right track. He sees the revenue numbers on a monthly basis and compares them to other licensees in the state. “You are on the right path, and the numbers will be there. You just need to be patient. You have the right team in place. You’re on your way to success. I have no doubt.”
Board Chair Mike Dreitzer applauded Resorts World’s investment and commitment to the state for the $4 billion property.
Tan said a lot of changes have been made to meet regulatory compliance and prevent the past problems from happening again Integrity and culture are vital and people need to say something if they see something wrong and not look the other way, adding that type of culture is what “got us wrong” in Nevada.
“We did a deep investigation into what needed to be done and started the ball rolling with regards to all the efforts as part of the settlement with the (Gaming Control) Board,” Tan said. “The parent board was completely shocked, took this very seriously, and took a position that there must be accountability at the property. We are too far away (in Malaysia), and we wanted to have a board at the property that the management could work closely with. We wanted people with highly impeccable reputations as well as experiences. I jokingly spoke to the rest of my colleagues like setting up the Justice League. I needed to hunt down Superman and find Wonder Woman.”
Tan turned to former MGM Resorts International CEO Jim Murren, who served on the Board as chair before stepping down to become executive chair of the General Commercial Gaming Regulatory Authority in the United Arab Emirates. He then turned to Sandoval whom he met when he served as governor, while Genting was considering acquiring the Resorts World site. Burnett and Michelle Ditondo were also sought out for the board for their experience. Ditondo was approved by the Gaming Commission in January.
“We all benefited from that,” Tan said of setting up the board at the property. “I think this is a model Genting Berhad wants to roll out to all of their properties across the globe. That’s adopting the gold standard of Nevada.”
Tan said they meet at least monthly via Zoom and will be in Las Vegas in early March to meet with the team.
“My role with Resorts World, along with other directors, is we all discuss and provide strategic directions and make decisions on all of the key matters as it relates to financial results to do with major investments and capital expenditures,” Tan said. “We approve budgets and we are now the guardians of good corporate governance and ensuring a culture of compliance will continue to exist and be upheld within the company.”
Dreitzer applauded Resorts World’s efforts for creating the board at the property level and its plans to take the concept elsewhere. Tan said they’re currently working on that at their New York property.
Control Board member Chandeni Sendall also praised Genting for its efforts for compliance and integrity and spreading the message to the team.
