HotelsCasino operator’s view of the dispute is ‘without merit’, says US group.

Fox rejects Genting’s take on theme park squabble

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Genting Highlands won’t be getting a theme park anytime soon.
Genting Highlands won’t be getting a theme park anytime soon. Photo Credit: GraceThang/GettyImages

Genting is now seeking more than US$1 billion in damages, according to a complaint filed in federal court in Los Angeles.

Genting Malaysia Berhad will have to go it alone or find a new partner for a theme park at its casino resort outside Kuala Lumpur after 21st Century Fox and its soon-to-be new owner, the Walt Disney Co., scrapped an agreement for a Fox World theme park at the site.

Genting is now seeking more than US$1 billion in damages, according to a complaint filed in federal court in Los Angeles. 

However, Disney and Fox have described Genting Malaysia’s claims against them as “without merit”, according to a Reuters report.

According to the Genting complaint, Fox Entertainment Group, under pressure from Disney, which is acquiring the former for US$71.3 billion, breached a 2013 contract to licence its intellectual property for the theme park.

Genting claimed that Disney wanted to back out of the deal because partnering with a gaming company did not fit its “family-friendly” brand strategy. 

Fox has rejected that allegation. “The allegation that Disney, rather than Fox, decided to declare a default is simply made up,” Reuters reported, citing a spokesman. 

The theme park standoff has added to a tough time for Genting Malaysia. It follows the Malaysian government’s hike of gaming duties by 10% to 35% on revenue collected.

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