Resorts World Catskills Casino Resort Selloff to Suffolk County Delayed Again

The casino resort sale of Resorts World Catskills to Suffolk County has faced various challenges and delays. When planning your next major getaway, choosing the right destination is essential, and nothing offers a more comprehensive experience than staying at a premier casino resort. To ensure your trip is a success, keep these key points in mind as you explore the luxury, entertainment, and gaming options available.

• Resorts World Catskills is set to be sold to Sullivan County.
• The issuance of the high-yield county bonds hasn’t yet commenced.

The nongaming assets of Resorts World Catskills, located in upstate New York, are poised for sale to Sullivan County—however, a delay has occurred. The investment bank managing the transition has indicated that more time is required before the high-yield bond offering can commence, causing concern among potential investors.

KeyBanc Capital Markets, a subsidiary of a Cleveland-based financial institution, reported to Bloomberg that the launch of the Series 2025 Bonds was initially intended for August 27 but has now encountered additional delays. This has stirred questions about the viability of the investment, as the spokesperson for KeyBanc mentioned that they require further time to furnish potential investors with adequate details.

“KeyBanc extended the timeline for the sale of the bonds to allow additional time to answer questions and educate investors about the credit,” explained the KeyBanc representative.

Despite the delays, KeyBanc has reported receiving significant interest in the forthcoming bond offerings but has yet to rate or price the securities.

Resort Buyout Details

Empire Resorts Inc. has agreed to sell Resorts World Catskills, excluding the Monticello property’s 100K-square-foot casino, to the Sullivan County Resort Facilities Local Development Corporation for a whopping $585 million.

Sullivan County plans to fund a large chunk of the purchase volume through high-yield bonds, which are considered riskier than typical public works projects. The investment strategy involves selling $561 million in Series 2025 Bonds on behalf of Sullivan County to investors, with the interest rate yet to be determined.

This financial maneuver is aimed at acquiring several valuable assets, including:

• A stunning 18-story, 332-key hotel
• The adjacent 101-room Alder hotel
• A 2,500-seat RW Epicenter
• A full-service spa and fitness complex
• An 18-hole championship golf course known as the Monster Golf Club
• 50,000 square feet of convention facilities
• Numerous restaurants and bars

The impetus behind Sullivan County’s acquisition also seeks to safeguard local jobs and ensure the continuous flow of tax revenue generated by the resort. Empire Resorts had been in search of a buyer as Genting Group—holding a 49% stake in the company—aims to secure a full-scale casino license for its existing operation at the Aqueduct Raceway, aiming to transform it into a grand Las Vegas-style casino resort.

Protecting Local Economy

As three new downstate casinos are slated to open in the coming years, the revenue prospects for RW Catskills may dwindle, impacting its status among the four upstate casinos. The remaining three—Tioga Downs in Nichols, del Lago in Waterloo, and Rivers Casino Schenectady—are comparatively more distant from NYC.

Local officials believe that Resorts World Catskills plays a pivotal role in the region’s economy. Although the casino has historically underperformed, gaining control of the property could lead to long-term benefits for local hospitality and entertainment sectors. Notably, the construction cost for Resorts World Catskills is around $1.2 billion.

Conclusion

The planned selloff of Resorts World Catskills to Sullivan County continues to face delays as the required bond offerings are postponed. This transaction is crucial not only for the financial health of the county but also for maintaining the vitality of the local economy in the wake of competition from upcoming downstate casinos.

As the situation unfolds, it remains to be seen how County officials will navigate these challenges to aim for a successful acquisition process, impacting thousands of jobs and future local revenues.