Malaysian-based gambling group Genting could lose $274 million if the US Department of Interior turns down the group's attempted construction of a land casino in Massachusetts.
The group is poised to take the big bath if the project is turned down, which is dubbed the First Light Casino and is being developed in conjunction with the Mashpee Wampanoag Indian tribe. The casino broke group last year but is being actively opposed by residents in the area, who also contend the government misallocated 300 acres of the land for the project. Because of this, the project is being reviewed by the US Department of Interior, who could derail the project altogether. A decision is expected by June 19th.
Speaking about the potential effects of a canceled project analyst Yin Shao Yang said, "[Genting] invested US$274 million in MW promissory notes that carry interest rates of 12% and 18% per annum. If the new record-of-decisions (ROD) is unfavorable, we gather that GenM may write off the investment and forego net interest income of RM105 million (US$24.45 million)."