An Interesting Bet on Twenty-First Century Fox in Las Vegas

Malaysia's Genting Group became the most recent casino company to open a grand resort. This company likes to license theme parks next to its resorts, and that could be a very good thing for a company like Twenty-First Century Fox.

Jul 26, 2014 at 9:00AM
Casino Worker

While investors have mostly put Las Vegas on the back-burner in favor of the more profitable Macau, things are starting to pick up again in Las Vegas, to the benefit of gaming companies that have a lot to gain from the Vegas rebound.

However, a new competitor is coming to Las Vegas. It's not an American company -- Malaysia's Genting Group may make things more difficult for Las Vegas gaming companies like Boyd Gaming Corp. (NYSE:BYD) that don't need any more competition to drive profits down further.

After another dismal first quarter with lower income as the US gaming sector struggles to reach its pre-2008 peak, Boyd exemplifies how US gaming investors have been disappointed over the last few years.

Yet this development could result in gains in the US because Genting has partnered with media companies like Universal Studios of Comcast (NASDAQ:CMCSA) to add theme parks to its resorts in Asia, this Vegas play gives investors an opportunity for an interesting bet on a company that will likely partner with Genting on the Vegas theme park. That company is likely to be Twenty-First Century Fox (NASDAQ:FOX) with its theme park Twentieth Century Foxworld. (To clear up confusion: Twentieth Century Fox is a film studio subsidiary of the Twenty-First Century Fox parent company.)

Resorts World Genting Via Genting

Photo: Genting/Resorts World

Genting's coming bet on Las Vegas
Genting, the Malaysian company that runs Resorts World casinos in Malaysia, Singapore, and soon other Asian countries, has been rapidly expanding in Asia and the US. Genting already runs a gambling operation in New York City with Resorts World New York, and boasts the highest-grossing US slot machine parlor. Now, US investors should closely follow the company's coming development in Las Vegas, even if they can't easily get Genting into their portfolios (as it's traded on the Malaysian and Singapore exchanges).

The company announced in 2013 that it would buy and take over a half-finished project on the Vegas strip that has been sitting vacant since Boyd Gaming Corp. abandoned construction on it in 2008. Genting will use the land to build a Resorts World Las Vegas. The first phase is set to open as soon as 2015.

Resorts World Las Vegas Via Resorts World On Youtube

A rendered preview of the expected appearance of the resort. Photo: Genting's Official Youtube Channel

The initial plans for the resort include 3,000 hotel rooms, a mega casino with over 3,500 slot machines and table games, and a 4,000-person theater. The beautiful Asian-themed resort will also include an elaborate garden, one of the largest aquariums in the world, potentially a live-panda exhibit, and a 674 foot tall roof-top observatory that required the company to get permission from the Federal Aviation Administration.

If investors don't buy Genting, its theme park partners might be a good play instead
Resorts World casinos have a unique way of partnering with media and entertainment companies to build theme parks attached to these casino resorts. In Singapore, Resorts World Sentosa is attached to Universal Studios Singapore, licensed by Comcast under NBCUniversal. Comcast made $2.2 billion in total theme park income during 2013 from its Universal Studios parks in the US, Japan, and Singapore, so this is a very profitable arm of its overall business. It's no wonder that more media companies are looking to diversify their income streams with theme parks.

With that, Twenty-First Century Fox announced plans to build its first-ever theme park, which will be attached to Resorts World Malaysia. In an effort to gain from the growing theme park demand as Comcast and other major media companies have done, with Twenty-First Century Fox World Fox hopes to start a successful line of theme park operations. The park is planned to open in 2016.

A rendering of the coming Foxworld Malaysia. Photo: Twenty-First Century Fox

Foolish investors' final bet: Nothing is certain but this could be a good bet
Genting President and Chief Operating Officer Kong Han Tan, while talking about the partnership between Genting and Twenty-First Century Fox in Malaysia, was questioned on his plans for Resorts World Las Vegas. He said the company is considering adding the same partnership to one of the next phases of its already enormous plans in Las Vegas. 

While concrete plans for a Twentieth Century Foxworld in Las Vegas have not been created yet, since the company already has a partnership with Fox to build its first theme park in Malaysia this is already an interesting bet. Just as Comcast has reaped huge benefits from the Universal Studios location attached to Resorts World Singapore, Twenty-First Century Fox may be at the start of something special. Investors who are looking for exciting trends should keep watching Genting while waiting for it to announce an official partnership in Vegas.

More exciting trends to watch: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Bradley Seth McNew has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers