NY Resorts World Catskills gets new private ownership

A majority of shareholders in Empire Resorts, parent company of Resorts World Catskills casino in Sullivan County, New York state, voted Wednesday to let casino magnate K.T. Lim’s family trust and Genting Malaysia take Empire private.

Lim’s family trust is Kien Huat Realty III Ltd., and Genting Malaysia is a giant, publicly traded, transnational gaming company that Kien Huat partially owns and controls, and which also owns Resorts World New York City in Queens. 

Both firms teamed up over the summer to make an August proposal to buy the roughly 14 percent shares they didn’t already own, offering $9.74 per share of common stock. A holding company controlled by the two firms will now merge with Empire, with the deal expected to close before year’s end. Under the agreement, Kien Huat Realty will assume a 51% stake in Empire Resorts, and Genting takes 49%.

“This marks a new chapter for Resorts World Catskills and is the first step toward fulfilling the promise and potential of New York’s most prized integrated casino resort destination," Ryan Eller, president & CEO, Empire Resorts, and Edward Farrell, President of Genting Americas, said in a joint statement to the USA TODAY Network New York.

On November 7, Empire reported a $26.4 million third-quarter loss, meaning that the company has lost roughly $238 million since its Town of Thompson casino’s February 2018 opening. Lim and Genting have said they aim to rescue Empire, which also owns the Monticello Raceway harness racing track. The vote was on Lim’s second effort to save that company, this time from the potential bankruptcy the company has warned that it’s headed toward. 

Empire Resorts will shortly cease to be listed on any public stock market. The company's stock was trading Wednesday at 9.73 a share, up slightly on the day, but down from about $23 a share when the casino first opened.

"By leveraging Genting’s extensive market knowledge, coupled with unrivaled play, stay, and dine facilities, Resorts World Catskills is well-positioned to increase performance and generate significant revenue for the region and New York state," the executives' statement continued.

In the meantime, the state Gaming Commission is expected to release details of an ongoing study in April that will help determine the future of gambling in New York. Downstate casinos, including Empire City and Resorts World, want to be allowed to add full-scale gambling that includes table games and privately owned slot machines. And while the four upstate casinos now have sports betting, they want to be able to add mobile betting — which is currently barred under state law.