New York’s Resorts World Catskills casino, managed and operated by Empire Resorts has registered a loss of $140m in 2018. The company revealed its losses in a filing with US Securities Exchange Commission (SEC).
The Resorts World Catskills, a premium Casino, with an estimated value of USD 1 billion, was opened in February 2018. In its filing with the SEC, the parent company Empire Resorts said: We have pledged a significant portion of our assets as collateral,” Empire wrote in the filing. “Defaults under any of our principal debt arrangements could result in a substantial loss of our assets.”
The Empire Resorts have also expressed their concern over the significant losses incurred by the casino during 2018. The company said that they have creditors to take care of and if the loss continues, putting in further funds or seeking additional investments will not be an option anymore.
Resorts World Catskills has consistently failed to provide Empire Resorts with the Gross Gaming Revenue (GGR), which they had expected. At one point the casino was not generating even 50% of the anticipated revenues.
“If regional and national economic conditions deteriorate or if competition further intensifies, we could experience decreased revenues from our operations and could fail to generate sufficient cash,” reads the company statement as filed with the SEC.
Given the current losses with the casino and amidst bleak prospects of generating a sustainable revenue, Empire Resorts is worried that Resorts World Catskills is not a viable business in the long run. As such, the company is looking forward to getting permission for online betting; the same has been denied by the New York legislators and authorities.
“We expect internet gaming and sports wagering to continue to be the topic of additional legislation, including the expansion of legalization efforts within New York State to venues other than holders of Gaming Facility Licenses. We are unable to determine whether and which, if any, legislation will be enacted and what effect it will have on our operations and our prospects,” Empire Resorts mentioned in their filing with the SEC.