Resorts World Catskills Bringing In Less Than Half of Projected Revenue as New York State Battles Neighbors for Business
Posted on: July 22, 2018, 08:00h.
Last updated on: July 20, 2018, 10:11h.
Resorts World Catskills was expected to be the crowning jewel of New York’s upstate casino expansion plans. But since opening in February, the venue has brought in less than half of its projected gaming revenue.
The casino is averaging just under $12 million a month in gross gaming revenue (GGR), putting the venue on pace to hit about $143 million per year.
‘Challenging Marketplace’
Moody’s believes that the casino will actually do slightly better than that, with the credit rating agency projecting annual GGR of about $150 million.
But that’s still only half of the $300 million that consultants had projected when Empire Resorts filled out its initial license application, and far below the $277 million the company suggested as a target just before the resort opened.
Empire Resorts president and CEO Ryan Eller sought to downplay the early results, telling the Times Herald-Record that factors including the level of competition from surrounding states has made the situation difficult, but that the casino can still rebound.
“The results are indicative of a challenging marketplace,” Eller said. “[But] there’s a huge market out there, and we’re developing better ways to go after it.”
One of the major hopes is that more visitors will come as additional non-gaming amenities are opened at the Thompson complex. A lower-cost hotel is set to launch in December, which will include retail space and additional food and drink options. In 2019, both an indoor water park and a golf course are set to open.
“They’ll certainly improve themselves when those other things open,” Father Richard McGowan, a management professor at Boston College, told the Herald-Record. “There’s a question of how much more casino activity can take place. What we have here is a classic case of over-projection.”
Trending Downward
While it would be a stretch to say that these struggles have been predictable, there was certainly a worry that the Catskills casino could underperform. The three other upstate New York casinos that were opened in the last two years have all fallen short of their projected revenues.
The Rivers Casino & Resort in Schenectady earned approximately $116 million in its first year, well below a projected range of around $200 million. The del Lago Resort and Casino in the Finger Lakes performed so poorly that its owners sought a bailout from state officials. Tioga Downs Casino Resort owner Jeff Gural has said that his venue is underperforming its expectations by about 25 percent.
The poor results for Resorts World Catskills have begun to call into question how well Empire Resorts will be able to handle the $535 million in debt it took on to build the resort. Moody’s has downgraded that debt to a negative rating, and says that evaluation could fall even further if revenues don’t start to improve.
Things could get yet worse for the facility in the long term as well. Not only are more casinos set to open in Massachusetts, but New York State could license additional casinos in the New York City metro area, something that would reduce the likelihood of gamblers traveling up from the city to the rural resort.
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Last Comments ( 6 )
I visited the "resort", but I left within 90 minutes. It was surreal. It is a huge cavernous property that looks like it could entertain thousands and it was so bizarrely empty at NOON that it was spooky. I have been a casino habitué for well over half a century. This is a weird [UN] welcoming [non]-resort property. It appeared to me that it is being seriously mis-managed. It is 'as if' they opened a casino without experienced management. With Malaysian ownership it is not surprising have made only some efforts to attract Asian players, because they imagined that they could create a huge web from which wealthy (primarily) Chinese baccarat players could be lured into wagering huge sums there instead of playing at the (easy to get to) Sands in Bethlehem, PA I have visited the Sands and they have nearly a hundred baccarat tables!
This venture was destined to fail from the start. You have a region of upstate NY that is one of the poorest in the state and has almost nothing to offer outside of the casino. The area is too far from New York City and is in a region that is completely over saturated with gambling options. Then they decide to basically cater to the Asian population, trying to bring the whales in from NYC and forget about everyone else. The July results thus far are the worst of the summer of June/July and it is not going to get any better. Now I know why Empire Resorts stocks sold off the day they got the license and has never recovered since. Stick a fork in them, the summer numbers tell an ugly story of hyped nonsense but no sense of true reality.
More advertisement needed for bus service to the casino. Trans Express runs a Saturday bus but there are no signs around the pickup area, and no advertisements in the local paper. First they run a bus twice a day seven days a week, which was a disaster.
I live 15 minutes from Resorts World Casino. There is hardly any billboards along Route 17 from Harriman which is Exit 130 where the thruway is to Exit 106 where the casino is located. This is the major roadway that reaches this area. There are only 2 very hard to see billboards for many,many miles of this major artery and they are basically in Sullivan County where we are all aware of the casino. The advertising is terrible and should be touted in counties that one passes through such as Westchester,Ulster,Orange etc. NYC tv and or radio stations would be another way to let people know about this area and the casino. Come on Resorts World,put some of that money to advertising and letting more people know you are here.
Been there you games are not playing friendly when they start off at 50 cents and up you don't get people staying and playing long many older people like penny games and will sit and play a long time and will spend more on there own but not when u make the only choice they have
Start catering to the locals instead of Asians,it will be the locals that keep you afloat when winter gets here,and they can start by offering affordable food. I was at a Buffett at casino Niagara last week,the price was 15 dollars a head,and the line was out the door