Sullivan County to Acquire Resorts World Catskills Nongaming Assets, Shifting Focus to the Casino Floor

In an important development for the region, the sale of non-gaming assets at Resorts World Catskills to a newly established Sullivan County corporation signals a strategic shift intended to refocus all energy on the heart of the property: the casino floor. By streamlining these surrounding holdings, the move aims to bolster the investment and excitement found directly on the casino floor, ensuring the gaming experience remains the primary driver for Upstate New Yorks premier destination.

Key Points

• Purchase Agreement: Sullivan County is set to acquire the non-gaming assets of Resorts World Catskills.
• Underperformance Issues: RW Catskills has faced challenges and underperformed since its opening in early 2018.
• New Development Corporation: The Sullivan County Resort Facilities Local Development Corporation has been established specifically to manage the acquisition.
• Capital Funding: The county plans to issue Series 2025 Bonds up to $585 million to support the acquisition.

Officials in Sullivan County have announced the formation of the Sullivan County Resort Facilities Local Development Corporation. This entity has been created with the primary objective of purchasing, developing, and managing non-gaming assets situated in the Town of Thompson, within Sullivan County.

In a recent meeting, the Sullivan County Resort Facilities Local Development Corporation unanimously voted in favour of a measure to issue bonds, which will help facilitate the acquisition. Initially, the plan was to raise approximately $570 million through these bonds, but the target has now increased to $585 million to accommodate additional costs associated with the deal.

Background on Resorts World Catskills

Opening its doors in February 2018 at a staggering cost of $1.2 billion, Resorts World Catskills features a massive 100,000-square-foot casino floor, offering around 1,600 slot machines and 140 live dealer table games. However, it faced financial difficulties from the start, leading to operational losses year after year.

The casino also discontinued its retail sportsbook earlier this year, highlighting ongoing struggles to meet financial expectations.

Challenges Faced

Genting’s ambitious $1.2 billion investment in Upstate New York has often been described as a misstep due to continuous revenue shortfalls. Empire Resorts, which operates the casino alongside Monticello Raceway, has consistently lost money. As the company approached bankruptcy in 2019, Lim Kok Thay of Genting took corrective actions to salvage the investment through his family trust.

As Genting refocuses on its new $5.5 billion investment plan for Resorts World New York City, Sullivan County is stepping in to stabilise Resorts World Catskills operations to ensure the locality retains its economic benefits. Despite its operational struggles, the casino has created approximately 1,400 union jobs and continues to contribute valuable tax revenue to the county.

“I want to assure the people and the taxpayers in Sullivan County that they have no stake in this deal. There’s no collateral that the county or its taxpayers are responsible for,” stated County Legislator Matt McPhillips.

Future Developments

The deal is focused on non-gaming assets which include the hotel, golf course, theatre, meeting spaces, dining venues, and a spa. As for when this acquisition will close, further details are yet to be confirmed.

Conclusion

This acquisition represents a significant move for Sullivan County as it aims to rejuvenate and invest in the assets surrounding Resorts World Catskills. The market will be watching closely to see how these changes will unfold and impact the local economy.