In upstate New York, the firm behind the recently-opened Resorts World Catskills integrated casino resort reportedly racked up debts of $58 million over the course of the five months to the end of June including about $37.2 million in the second quarter alone.
Long-term debt mounts:
According to a Tuesday report from NewYorkUpstate.com, the revelation from Empire Resorts Incorporated came via a quarterly financial filing to the United States Securities and Exchange Commission and means that the casino operator is now responsible for approximately $462 million in long-term debt.
More obligations may follow:
Also responsible for the eastern state’s older Monticello Raceway, NASDAQ-listed Empire Resorts Incorporated detailed that it may need to take on even more liability in order to survive the current economic environment.
Empire Resorts Incorporated’s filing reportedly read…
“We cannot be certain that our business will generate sufficient cash flow from operations, that our anticipated earnings from the casino will be realized or that future borrowings will be available under our existing debt arrangements or otherwise to enable us to service our indebtedness or to make anticipated capital expenditures. Our future operating performance and our ability to service our debt will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control.”
Largest of four new casinos:
Opened near the small Sullivan County town of Thompson in early-February, the $1.2 billion Resorts World Catskills is the largest of the four non-tribal integrated casino resorts that were authorized via state legislation ratified in 2014.
The 2,150-slot property was preceded by the nearby Tioga Downs Casino Resort as well as the more distant Del Lago Resort Casino and Rivers Casino and Resort Schenectady and it had been hoped that the venues would help to boost their local economies by attracting large numbers of foreign and domestic tourists.
New casinos under-performing:
However, this hoped-for economic regeneration has yet to materialize with all of the new casinos reportedly falling short of the revenue predictions they gave the state as part of their 2016 license applications.
The future of Del Lago Resort Casino is the most uncertain after Moody’s Investor Service recently warned that the Seneca County facility may not be able to pay its debts. The bond ratings agency followed this up in June by downgrading Resorts World Catskills’ rating while increasing its risk of default after determining that the enterprise’s annual revenues were likely to be some $100 million below an original $250 million prediction.