{"id":12596,"date":"2018-08-24T18:03:11","date_gmt":"2018-08-24T18:03:11","guid":{"rendered":"https:\/\/www.pokerscout.com\/?p=12596"},"modified":"2018-08-26T15:41:14","modified_gmt":"2018-08-26T15:41:14","slug":"resorts-world-catskills-spirals-toward-trouble-with-massive-revenue-shortfall","status":"publish","type":"post","link":"https:\/\/www.pokerscout.com\/resorts-world-catskills-spirals-toward-trouble-with-massive-revenue-shortfall\/","title":{"rendered":"Resorts World Catskills Spirals Toward Trouble With Massive Revenue Shortfall"},"content":{"rendered":"
Maybe del Lago<\/strong> won\u2019t be the first New York<\/strong> casino to go belly-up, after all.<\/p>\n Empire Resorts<\/strong> recently filed a troubling financial report covering\u00a0Resorts World Catskills<\/strong> and the attached Moniticello Raceway<\/strong>. The billion-dollar<\/strong> casino complex is the newest in NY, and its situation is already looking grim.<\/p>\n The filing reveals sharp losses and mounting liability in excess of a half a billion<\/strong> dollars, raising serious questions about the property\u2019s future.<\/p>\n The report looks bad from top to bottom.<\/p>\n Since opening Resorts World in February, Empire Resorts has lost more than $58 million<\/strong>. It\u2019s trending the wrong way, too, with more than $37 million<\/strong> of that loss coming during the fairer-weather months of Q2.<\/p>\n Prior to opening the casino, Empire Resorts projected $277 million<\/strong> in first-year revenue. Estimates from some of its consultants were even more aggressive, surging past $300 million.<\/p>\n Through the first half of the year, Resorts World earned just $82 million<\/strong> in net revenue, posting losses of $41 million<\/strong> from gaming operations. Interest payments added another $17 million<\/strong> to that red number.<\/p>\n At the time of filing, the company held\u00a0$16.7 million in cash<\/strong> on hand and assets totaling $30 million<\/strong>. Liabilities and stockholder equities, meanwhile, exceed $780 million<\/strong>. The majority of that total is attributable to long-term debt<\/strong> stemming from development and construction.<\/p>\n The company\u2019s statements don\u2019t exactly paint a rosy outlook for the future, either:<\/p>\n \u201cWe cannot be certain that our business will generate sufficient cash flow from operations, that our anticipated earnings from the Casino will be realized, or that future borrowings will be available under our existing debt arrangements or otherwise to enable us to service our indebtedness or to make anticipated capital expenditures.\u00a0As a result, we may need to raise additional capital or incur additional indebtedness, including from our largest stockholder or by issuing securities \u2026<\/p>\n Our future operating performance and our ability to service our debt will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control.\u201d<\/p><\/blockquote>\n Yikes.\u00a0Empire Resorts received a credit downgrade<\/a> from Moody\u2019s Investor Service<\/strong> in June, further inhibiting its forecast.<\/p>\n Results were reported by NYup<\/a><\/strong>, and you can browse the full SEC<\/strong> filing here<\/a>.<\/p>\nEmpire Resorts deeply in debt<\/span><\/h2>\n
The company responds<\/span><\/h2>\n
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