This week’s casino news starts us of in upstate New York where one of the most lavish, innovative casinos is on the verge of bankruptcy. Can the Resorts World Catskills still be saved?
Resorts World Catskills On Verge Of Bankruptcy
The largest upstate casino in New York is reportedly on the verge of bankruptcy following a couple of years in which it was unable to generate profits. According to the report, the Resorts World Catskills was hit with a $36 million loss in the last quarter. The company is seriously considering claiming bankruptcy in an effort to square away its debts.
The casino’s largest shareholder, the Genting Group, has put forward a proposal to buy out the remaining shares of the company from the parent company Empire Resorts. According to an SEC filing by the publicly-traded company, the $1 billion casino in Monticello suffered operating losses of $73.5 million through the end of June. If Empire Resorts doesn’t take the deal with the Genting Group, it would likely have to file for Chapter11 bankruptcy in order to negotiate its debts with creditors.
After projecting $300 million in revenue for 2019, the Resorts World Catskills is currently on pace to fall nearly $100 million short of that mark. It will be interesting to see what route the Genting Group decides to take moving forward following the stunning financial revelations.
Highest Gaming Tax Structure In U.S. Keeps Chicago From Opening Casinos
An independent analysis based on potential casinos in the Chicago area has revealed that there is major risk associated with any projects in the city because of the “highest effective gaming tax and fee structure in the United States”. Union Gaming Analytics, the company that put together the report, investigated the potential outlook for casinos in the area after Chicago Mayor Lori Lightfoot put forth her idea for a new project. Union Gaming Analytics was paid $100,000 to review five potential sites in Chicago as potential casino destinations.
A decommissioned hospital edged out a golf course and a former steel plant as the most likely destination for a new casino in the city according to the Las Vegas-based analytics company. However, the report noted that the location didn’t matter as the proposed gross tax rate of 72 percent would keep any gambling facility from ever getting off the ground. Whether or not Chicago officials decide to revisit the tax rates in the city in wake of the report is another story altogether. For now, it appears as though any potential casino initiatives in the city will be put on hold, so blackjack players will have to keep looking around for a place to play.
Hard Rock Las Vegas To Close For Eight Months For Renovations
One of the landmark hotel and casino destinations in the Las Vegas will close for eight months starting in February 2020. The Hard Rock Hotel and Casino will completely shut down operations for two-thirds of the year in order to make substantial changes to their buildings.
While a previous announcement by the casino indicated that the renovation period would be limited to four months, that timeline has changed dramatically according to the latest update.