Debt climbs for Empire Resorts Incorporated

In upstate New York, the company behind the recently-opened Resorts World Catskills incorporated casino resort allegedly racked up debts of $58 million on the course of the five months to the end of June including about $37.2 million from the second quarter alone.

Long-term debt mounts:

According to a Tuesday report by NewYorkUpstate.com, the revelation from Empire Resorts Incorporated came via a quarterly financial reporting into the United States Securities and Exchange Commission and signifies that the casino operator is now responsible for about $462 million in long-term debt.

More obligations may follow:

Also accountable for its eastern state’s elderly Monticello Raceway, NASDAQ-listed Empire Resorts Incorporated comprehensive that it may need to take on much more liability so as to endure the present financial environment.

Empire Resorts Incorporated’s filing allegedly read…

“We cannot be certain that our business will generate sufficient cash flow from operations, so that our anticipated earnings from the casino will be realized or that future borrowings will be available under our current debt agreements or to enable us to service our indebtedness or to make anticipated capital expenditures. 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.

Largest of four new casinos:

Opened close to the little Sullivan County town of Thompson at early-February, the 1.2 billion Resorts World Catskills is the largest of the four non-tribal incorporated casino hotels that were licensed via state legislation ratified in 2014.

The 2,150-slot property was preceded by the nearby Tioga Downs Casino Resort in addition to the more remote Del Lago Resort Casino and Rivers Casino and Resort Schenectady also it had been hoped that the places would help to boost their regional economies by bringing huge numbers of overseas and domestic tourists.

However, this hoped-for financial regeneration has yet to materialize with each one of the new casinos allegedly falling short of the revenue forecasts they gave the state as part of the 2016 license applications.

The future of Del Lago Resort Casino is the most uncertain after Moody’s Investor Service recently cautioned that the Seneca County facility may be unable to cover its debts. The bond ratings agency followed up in June by downgrading Resorts World Catskills’ rating while increasing its risk of default after determining that the venture ’s yearly revenues were likely to be a $100 million under a preliminary $250 million prediction.