Resorts World Catskills has officially welcomed its new owner Genting Malaysia and Kien Huat Realty III, following a recent shareholders meeting. Following a vote with prevalent approval, Empire Resorts would go private, owned by the Malaysian gaming powerhouse. This is projected to guarantee the struggling casino operator’s future and preserve the newest commercial casino resort in New York State.
Financial struggles are among the main reason for going under within a cannibalized field with too many players. Upstate New York has four commercial casino resorts, all welcoming patrons and striving to give them the most advanced gaming offerings, but at the end of the day, it is the financial report that showcases everything that boosted operation and the things that need more work.
Resorts World Catskills with New Owner
Empire Resorts invested some US$1.2 billion in Upstate New York’s newest commercial casino resort that promised cutting-edge technology and the premium gaming action patrons deserve. However, the most recent financial report reflecting on the third quarter of this fiscal year concluded that the amount lost since the official launch of Resorts World Catskills in February 2018 reaches US$238 million.
Earlier this year, the casino operator was ready to file voluntary bankruptcy and this is when the Malaysian gaming leaders entered the stage. In order to help out the struggling casino operator and make sure that casino operation would continue and even improve, Genting Malaysia came up with an offer to privatize Empire Resorts purchasing the remaining interest of the casino resort. It should be taken into account that the Malaysian giant was already a majority owner in Resorts World Catskills.
This week was a special one, as shareholders of Empire Resorts had the chance to vote on the sale and share their position on the subject. They gave their resounding approval of the sale that is projected to be a step in the right direction for the casino operator. Ryan Eller, President & CEO, Empire Resorts, and Edward Farrell, President of Genting Americas, were pleased with the reaction.
Mr. Eller said that this sale is a milestone for the company, as it marks a new era of its development, projected to be the casino resort closer to its revenue projections issued ahead of its launch. When Resorts World Catskills welcomed its first casino patrons, Empire Resorts shares reached some US$23 a share, but progressive slump has caused them to currently reach US$9.73 per share.
Going private means that the casino operator would no longer worry about the shares prizes, as no stock market would list it. As for the ownership, the arrangement calls for a 51-49 operation. Kien Huat Realty will oversee 51 percent of Empire Resorts, whereas Genting Malaysia will take 49 percent ownership. Costs optimization might be the way to go, but this does not mean staff layout.
Resorts World Casino in Queens would be subjected to cost-reducing measures. The Monticello casino resort greenlighted its poker room comes with 20 tables and as many as 180 seats, guaranteeing enough space for everyone interested in playing. This summer also saw Empire Resorts receive approval of previously discussed US$100-million gaming hall in Orange County that could bring 1,100 video lottery terminals to Woodbury after 2023.