In upstate New York and casino operator, Empire Resorts Incorporated, has reportedly agreed to sell its remaining stake in the loss-making Resorts World Catskills property to Genting Malaysia Berhad via the Malaysian firm’s Kien Huat Realty investments arm.
According to a Tuesday report from the Poughkeepsie Journal newspaper, the Monticello-headquartered enterprise revealed that the deal, which is expected to close before the end of the year, will make Genting Malaysia Berhad the sole owner of the Sullivan County venue and allow it to better service its debts in order to avoid bankruptcy.
High hopes:
The newspaper reported that the $1 billion Resorts World Catskills opened its doors in February of 2018 as the last of the eastern state’s first tranche of four Las Vegas-style commercial casinos. It was hoped that these properties, which additionally encompass Del Lago Resort and Casino, Tioga Downs Casino Resort and Rivers Casino Resort Schenectady, would help to boost upstate tourism but they have since largely failed to live up to expectations with revenues continually coming in below predictions.
Upgraded obligation:
The Poughkeepsie Journal reported that Resorts World Catskills recently recorded a quarterly loss of $36 million to take its latest annual deficit up to $73.5 million while the agreement contains a provision that is to see Kuala Lumpur-listed Genting Malaysia Berhad up its funding commitment to the New York casino by around 48% to some $77 million.
Improved concentration:
Ryan Eller, President for Empire Resorts Incorporated, reportedly declared that the arrangement will moreover allow his firm to better concentrate on its nearby Monticello Raceway horseracing facility and facilitate the planned introduction of video lottery terminals across neighboring Orange County.
Eller told the newspaper…
“With the resources and support of Kien Huat Realty and Genting Malaysia Berhad, Empire Resorts Incorporated will be better positioned financially and operationally, which will help us advance our mission of delivering a winning combination of luxury facilities, quality entertainment and exceptional customer service.”