$585M Investment in Resorts World Catskills: A Strategic Move or a Risky Gamble?

Sullivan County, New York, is making a significant investment by acquiring the majority of the non-gaming assets of Resorts World Catskills, a casino resort located in Monticello. The deal, valued at $585 million, is structured through the newly formed Sullivan County Resort Facilities Local Development Corporation (SCRFLDC). This move aims to alleviate financial pressures on the casino's owners, Empire Resorts Inc. and Genting Malaysia, while fostering regional economic development.

The acquisition encompasses various non-gaming assets, including The Alder Hotel, the Monster Golf Course, the Epicenter entertainment venue, and several dining establishments. However, the casino operations and the Kartrite Resort & Indoor Waterpark remain under the ownership and management of Resorts World Catskills. The SCRFLDC plans to finance the purchase through the issuance of $561 million in tax-exempt revenue bonds, with a maturity date set for December 15, 2040.

One of the major opportunities tied to the resort is the potential to enhance tourism and hospitality in the region. By further developing and promoting the resort’s amenities, Sullivan County can attract more visitors, extend their stays, and position itself as a stronger destination for both leisure and entertainment.

Another key advantage is job creation. The planned expansion of resort operations is anticipated to generate numerous employment opportunities for residents, ranging from hospitality roles to maintenance, management, and service positions. These new jobs can strengthen the local workforce and improve economic stability for families in the area.

Beyond the resort itself, regional development could see a significant boost. With over 1,300 acres of undeveloped land available, future projects could include affordable housing, retail spaces, or commercial hubs, broadening the county’s economic base and supporting community needs.

In addition, local businesses stand to gain from the resort’s growth. Increased visitor traffic would naturally extend to surrounding restaurants, shops, and service providers, helping to circulate revenue within the community and build a stronger local economy.

The acquisition is expected to bring meaningful economic revitalization to Sullivan County. By developing the resort’s non-gaming assets, the county can attract a wider range of tourists, encouraging more local spending in restaurants, shops, and surrounding businesses. This kind of growth has the potential to boost the overall regional economy.

Despite the potential benefits, several risks and challenges accompany this acquisition. One of the most pressing issues is the financial burden tied to the acquisition. The county has taken on substantial debt through bond issuance. If the resort’s non-gaming assets fail to produce the expected revenues, this debt could place long-term strain on the county’s financial stability.

Market competition is another concern. With the expansion of full casino gaming in and around New York City, there is a real possibility that visitors who might otherwise have traveled to the Catskills resort could choose closer alternatives. This shift could reduce profitability and undermine the county’s projections for growth.

Community sentiment also presents challenges. Some residents have expressed concerns about whether investing in the resort is the most effective use of public resources. They argue that funds might be more effectively directed toward pressing priorities like affordable housing, infrastructure improvements, or other local services.

Finally, operational challenges must be taken into account. Managing a large resort marks a significant departure from the county’s traditional role, requiring new expertise and oversight. This shift introduces potential complexities in day-to-day operations and raises questions about whether the county can consistently maintain the service quality necessary for long-term success.