Local New York firm, Wilmorite Properties Incorporated, has reportedly announced that it is selling its 50% stake in the Del Lago Resort and Casino to fellow property developer Peninsula Pacific LLC.
According to a Friday report, the planned deal has already been approved by the Tyre Town Board and will result in Los Angeles-headquartered, Peninsula, becoming the sole owner of the $440 million Seneca County property.
The 205-room Del Lago Resort and Casino reportedly opened its doors in February of 2017 as the second of the eastern state’s first tranche of four Las Vegas-style commercial casinos. It was purportedly hoped that these properties, which additionally encompass Tioga Downs Casino Resort, Resorts World Catskills and Rivers Casino Resort Schenectady, would help to boost upstate tourism although they have since largely failed to live up to expectations with revenues continually coming in below predictions.
NewYorkUpstate.com reported that Wilmorite is led by Rochester-based businessman, Thomas Wilmot Sr., and its decision to dispose of its entire Del Lago stake comes after it was unsuccessful in lobbying New York Governor, Andrew Cuomo, for a range of financial concessions.
Wilmorite issued a statement in which it declared that it has ‘tremendous pride in the development’ of the upstate New York casino subsequent to describing the impending sale as a chance to ensure ‘long-term benefits for all owners, patrons and the community.’
According to the statement…
“We selected Peninsula Pacific LLC as a partner when the concept of Del Lago Resort and Casino originated and we still have full confidence in the leadership. Del Lago Resort and Casino is good for our community. It has created employment opportunities, an entertainment destination and a new stream of revenue for the town and county. The continued success of Del Lago Resort and Casino is good for everyone in the Finger Lakes region.”
Additionally, January saw Moody’s Investor Services downgrade Del Lago Resort and Casino’s credit rating for a second successive year citing the ‘negative’ financial outlook that had been created due to a crowded upstate casino market and lower than anticipated revenue growth. To make matters worse, last week saw Resorts World Catskills explain that it is considering whether to file for bankruptcy protections.
However, M Brent Stevens, Chairman and Managing Partner for Peninsula, expressed optimism in the long-term prospects of Del Lago and used a subsequent statement to proclaim that the deal ‘signals our further commitment to be the premier source of gaming and entertainment in the Finger Lakes region.’
Stevens’ statement reportedly read…
“Since 2017, Del Lago Resort and Casino has been proud to be part of the Seneca County and Finger Lakes community. We have created nearly 2,000 direct and indirect jobs for local residents. We have been a gateway to the region, helping to increase tourism and providing a new revenue source for local governments. We look forward to continuing to be a good neighbor and a part of the fabric of the Finger Lakes region.”