Casino in the US state of New York threatens bankruptcy
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Will soon be a big US Casino? As was recently read in the US media, the World Catskills Resorts in New York is about to bankrupt, although the mammoth project was only completed in February 2018. Already in the first six months of this year there was a minus of $ 73 million. Empire Resorts, the project owner, currently speaks of cumulative debts of almost $ 1 billion. But what’s next?
Analysts seem to keep right
Gambling is very important in the USA and especially on the east coast of the country. This can be seen solely in the fact that im US state of New York A total of nine huge casinos are located, including five casinos that are operated by indigenous people, the so-called Indians-Casinos. but gradually the economic success story threatens to find a quick end. for a long time there was a real casino boom in new york. in addition to the classic casinos, “Racinos“literally stamped out of the ground. these are casinos that also offer horse races on their own racecourse. in the united states, just as in great britain, horse races are still extremely popular and are considered the place of a social get-together, especially among well-wounded people. for a longer period of time, gaming projects also Democratic governor Andrew Cuomo financially funded. Ultimately, politics and business not only promised tax revenues and sales increases, but also the creation of lots of new jobs from the new casino buildings. To date, this project was also crowned in the reality of success, as Cuomo confirmed in a radio interview.
“We have not approved the casinos in upstate New York because it is the best industry in the world, but because the economy in New York has been suffering for decades. The casinos brought thousands and thousands of jobs to the north of New York and invested billions of dollars. ”
But the almost endless number of new casino projects has been seen critically by business experts over time, one Oversaturation of the market was predicted a few months ago. Now this forecast seems to be true. Because with that Resorts World Catskills The first of the relatively young miracle casinos in New York are now threatened.
Is help from the Far East?
Monthly losses in the double -digit millions and already cumulative debts that scratch the billion dollar border-the casino operator currently has to deal with this. it is clear that without foreign financial support, the new york casino will not continue long. however, this would not only mean bad things for the casino operator, but also for the us playbench employees-and probably also for politics that have so far had no ear for the warning words of the economic experts. it is currently not to be expected that the state provides financial aid in such high debts, since a scandal would certainly be the result if Tax money for rescue a casino would be used. Help has to come from elsewhere, and at the moment it looks like someone is actually being outsourcing the financial lifeline.
“Empire Resorts, Inc. (the“ company ”or“ Empire ”) is at a critical point. Despite repeated liquidity of lending and shareholders, the company had to accept considerable financial losses year after year, could not bear financially due to the income from his business and does not seem to have any reasonable prospects to become financially independent in the future. “
The majority of the Resorts World Catskills is in possession of the Group no Huat Realtythat comes from Asia. Without a fight, the Asian stakeholders apparently do not want to withdraw from the US gaming market. However, the reasons for the failure of the casino are complex and a rescue operation should only be made in question if the factors for the economic end of the casino can be eliminated.
the multiple factors behind the economic failure of the casinos: in addition to the high competition and the resulting oversaturation of the market, false management should also be responsible for the impending bankruptcy of the casino. in addition, the competition is not only high in new york. in particular, the casinos and games of chance in the area like new jersey or connecticut seem to be more attractive than the destination in the remote northern part of new york.
Surprisingly, the Genting Malaysia Investor Berhad His willingness signals to make the appropriate funds loose in order to save the Resorts World Catskills. If the time comes, it can be assumed that the casino will be completely restructured. In particular on the mobile sports betting market, investors and new shareholders would like to get involved, as recently became known. It remains to be seen to what extent the current owner is open to this step.