Resorts World Catskills Sees Half its Predicted Revenue
Resorts World Catskills opened its doors in February 2018. It was thought that it would be the crowning achievement of New York’s casino expansion plans. However, things have not been going according to plan, and since opening, it has brought in less than half of what its predicted gaming revenue. So far, Resorts World Catskills has brought in around $12 million a month in gross gaming revenue (GGR). This puts it on course to earn around $143 million in GGR in 2018.
Resorts World Catskills Missing the Mark
However, the initial estimates were that the casino would earn $300 million in 2018, with the resort itself predicting $277 million. This means that it is going to miss these predictions by a significant margin. The Moody’s Corporation, responsible for credit ratings, is a little more optimistic and believes the property can do $150 million in GGR this year.
The President and CEO of Empire Resorts, the company behind Resorts World Catskills, has come out and tried to downplay the initial performance. He stated in an interview that the performance indicates how difficult the competition is in the market, including competition from neighboring states. However, he remains confident because the market is he and they are constantly seeking new ways to reach potential customers.
Underperformance of Resorts World Not Surprising
There is still hope for the future as there are numerous non-gaming activities that will be coming to the property in the future. A more affordable hotel will be opening towards the end of 2018, which will add retail space and numerous other food and drink options. Then, in 2019, Resorts World Catskills will see its indoor water park opening, as well as its gold course. All of these should help bring more visitors.
The underperformance is not all that surprising though. Other upstate New York casinos have all performed far below expectations. The Rivers Casino and Resort was expected to bring in $200 million but only managed $116 million. The del Lago Resort landed up requiring state assistance, while Tioga Downs missed its projected GGR by around 25%.