Resorts World Catskills, which has been deemed ‘nearly bankrupt,’ has been sold to a Malaysian billionaire. The New York-based casino, which is said to be the largest in the upstate area, has accepted a buyout. Empire Resorts, which is the parent company of Resorts World Catskills, announced at the beginning of the week that it intends to sell the casino’s remaining shares. The shares are said to be worth $1.2 billion.
Resorts World Catskills is a Las Vegas-styled casino. The sale took place less than two weeks after the resort had contemplated applying for Chapter 11 bankruptcy. The deal is set to be signed, sealed, and delivered before the end of the year. Once this has been done, Genting Malaysia Berhad, which is the conglomerate belonging to Lim Kok, will become the sole owner of the Resorts World Catskills casino resort. The purchase deal is said to have been 15% over market value on the current company stocks.
Resorts World Catskills Fails After Less Than Two Years
Resorts World Catskills opened its doors in February 2018. In the same year, the casino resort lost over $130 million. In the first half of 2019 they, again, announced a loss, this time it amounted to $73.5 million. Following the financial difficulties, the company has now been saved by a billion-dollar company, Genting Malaysia Berhad, currently chaired by Lim Kok Thay.
Previously, Resorts World Catskills was publicly traded. Once the purchase is done, the company will no longer trade publicly. Genting Malaysia is currently an 85% owner of the Catskills Resort. When the parent company, Empire Resorts, filed Q2 financials, they stated that Resorts World Catskills was operating at a loss. They’ve been quoted as saying, “We are currently generating operating losses, as the casino revenues have not exceeded the costs related to the casino since its opening in February 2018”.
Final Bow Out
The president of Empire Resorts, Ryan Eller, has stated that the new purchase deal will allow the resort company to focus on the Monticello Raceway. Also, further plans for the resort include the introduction of video lottery terminals, VLT.
