Amid legal concerns and poor financial performance, the Malaysia-based Genting Berhad of Resorts World Las Vegas announced on December 5 that it would be appointing a new CEO and creating a board of directors to oversee the casino.
A Brief History of the Resorts World Property
What would become Resorts World was originally developed on the site of the former Stardust Hotel and Casino. Boyd Gaming demolished the original property, and the new resort began construction. After 14 months, the Great Recession severely damaged the casino industry, and construction was halted. Five years later, Genting Berhad acquired the property and renamed it Resorts World. Construction began once more in 2015. Though the property sits on 88 acres, nearly half remains undeveloped.
The Allegations Against Resorts World
Currently, both Resorts World and Genting Berhad face allegations raised in a 12-count disciplinary complaint filed in August by the Gaming Control Board. The 31-page filing charges the company with allowing known illegal bookmakers to gamble millions of dollars for more than a year. The Gaming Control Board and regulators will likely seek a multimillion-dollar fine and that action be taken against Resort World’s ownership and property operators.
New Positions and Appointments
The company has had several months to respond to the complaint, the deadline of which is December 9, but has chosen to announce leadership changes in the meantime. Genting Berhad announced that longtime gaming industry executive Jim Murren would be the chairman of a four-person board of directors overseeing the Resorts World establishment.
Alex Dixon, another veteran of the gaming industry and Las Vegas native, was named as the new CEO of Resort World. In November, Dixon had previously announced his resignation from being CEO of the Q Casino & Resort and Dubuque Racing Association in Dubuque, Iowa, sharing that he was pursuing an out-of-state opportunity. It may be assumed that this opportunity was to become the CEO of Resort World. Dixon has spent over 20 years in gaming, hospitality, and entertainment.
Poor Financial Performance
Beyond a potential response to the allegations currently facing Resort World, the change comes following the casino hotel’s worst financial quarter in three years. While the hotel reportedly blamed the intense summer heat for its monetary issues and the “economic uncertainty in an election year,” analysts have continually redirected attention to the Gaming Control Board’s disciplinary complaint.
Addressing the Issues and Moving Forward
Regardless of what happens in the coming days, Murren and Dixon will have their hands full with addressing Resort World’s issues. For his part, Murren appears to be optimistic about the casino hotel’s forward momentum. In a statement, he said that “[Resort World’s opening] transformed the Vegas Strip.”
Currently, Murren is the CEO of the Ritz-Carlton Yacht Collection and chairman of the General Commercial Gaming Regulatory Authority in the United Arab Emirates. His appointment to Resort World’s new board of directors may seek to use this regulatory experience to address the complaint currently facing the establishment.
“With over 40 years of collective experience in the global gaming and hospitality industry,” Genting Berhad chairman K.T. Lim said in a statement, “we are confident that Alex and Jim, alongside the board, will help drive the company forward in pursuing our strategic goals for years to come.”
In a statement, Genting Berhad suggested that Resorts World had room to benefit from additional dining, entertainment, and retail changes or additions. They also plan to take advantage of the property’s 5,000-seat theater, shifts which they hope will “drive significant foot traffic in the remainder of 2024 and beyond.”
What Comes Next?
It remains to be seen how the disciplinary complaint will affect Resort World, but the casino hotel has very little time to respond. Murren and Dixon must be prepared to fill their respective roles and navigate what comes next for the casino hotel.
