Industry Reports

Empire Resorts Lost US$238m Since Resorts World Catskills Launch

Empire Resorts issued its financial performance for the third quarter of fiscal 2019, a three-month period, which ended up being quite eventful for the casino operator. Over the three months that ended September 30, the operator overseeing Resorts World Catskills reported loss reaching US$26.4 million, as well as gaming revenue amounting to US$69.5 million.

This week also saw casino giant Genting Malaysia Bhd conclude the acquisition of a 38.3-percent stake in the New York casino operator, essentially guaranteeing its future operation. The only way this was projected to happen was via taking Empire Resorts private, a decision that received the approval of both parties in August. Financial struggles experiences by Empire Resorts led to the consideration of filing for voluntary bankruptcy.

Q3 2019 Financial Report

The third quarter of this fiscal year commenced at the beginning of July and extended all the way to the end of September. Empire Resorts recently issued its financial report, which reflects the period when filing for voluntary bankruptcy was considered. Earlier this year, a Securities and Exchange Commission filing showed a concerning figure reaching a US$36 million loss in the second quarter of 2019.

The first three months of this fiscal year witnessed a US$37 million loss. Q3 of this fiscal year witnessed loss reaching US$26.4 million, showcasing a downwards progression. When compared to the casino operator’s performance during Q3 2018, it is an improvement once again, as back then Empire Resorts reported US$33.7 million. This swells the overall loss since February 2018 to US$238 million.

In the meantime, gaming revenue over the past three months reached US$69.5 million spelling a rather successful quarter for the casino operator. Q3 2018 witnessed gaming revenue of US$59.9 million amassed by the casino resort located in the Town of Thompson, as well as the Monticello Raceway. It is clear that the past three months have witnessed increased gaming revenue, which could be contributed to the launch of New York State’s largest poker room at Resorts World Catskills.

Privatizing in Progress

Table games, in particular, were able to generate some US$27.6 million, whereas slot machines amassed about US$33.3 million. The brand new poker room comes with 20 tables and as many as 180 seats, guaranteeing enough space for everyone interested in playing. Among the special features that make this poker heaven stand out are the in-room cashier, complimentary beverage service, and USB charging ports for everyone.

In order to guarantee diverse activities for every taste, the casino resort would offer Texas Hold’em (limit and no-limit), Omaha (Hi-Lo and Pot-Limit), and 7 Card Stud. This week saw Genting Malaysia’s conclusion of the stake acquisition amounting to some US$128.6 million. The subsidiary company Genting (USA) Ltd. finalized the arrangement of acquiring some 13.2 million units of the common stock.

The ultimate goal would be for the joint venture of Genting Malaysia and Kian Huat Realty III to privatize Empire Resorts. The acquisition is eyed as an opportunity for the Asian giant to expand its footprint across the states and New York State, in particular, an important move amid a developing sports wagering field.