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Genting Malaysia is making big changes to its portfolio in New York, moving to clear out Empire Resorts’ hefty debt by restructuring ownership of some of its non-gaming assets. The move, announced just recently, involves a complex sale and lease-back transaction that could leave the Empire Resorts division on a much more stable financial footing.
In the heart of this restructuring, Genting Malaysia will sell a collection of non-gaming amenities associated with Resorts World Catskills (RWC)—one of its flagship integrated resorts in New York state. The assets up for sale include the 332-room RWC hotel, the 99-room Alder Hotel, the sprawling 18-hole Monster Golf Course, the 2,500-seat RWC Epicenter, and several restaurants, all packaged together and sold to the Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for a total of US$525 million.
But the story doesn’t end with a simple sale. Genting Malaysia’s strategy is to take those proceeds and, in tandem, purchase the land beneath the entire package, over 1,500 acres, from real-estate trust EPR Properties for just a little more than US$201 million. In the same breath, the company also plans to enter into a 20-year management agreement with SCRFLDC, guaranteeing its continued involvement in the day-to-day operations of these non-gaming assets, even if it won’t technically own them anymore.
The timing and purpose behind all of this is clear. By pocketing the $525 million in cash and streamlining its asset structure, Empire Resorts will finally be able to pay off its $300 million in 7.75% Senior Unsecured Notes set to mature on November 1, 2026. That means a debt-free track ahead and, according to Genting Malaysia, a sharper focus on operating improvements and unlocking the full potential of the business.
If all goes as planned, Genting expects to walk away from the two-pronged transaction with about $10 million surplus on the books. The company says these decisions will “reinforce Genting Malaysia’s long-term commitment to improve its competitive position within the New York State gaming market and the broader northeastern US region.”
The filing also highlighted the intended social and economic benefits tied to the transaction. SCRFLDC, which is authorized by Sullivan County to develop and manage public infrastructure, will be able to leverage these assets to relieve local unemployment, encourage new jobs, and generally lighten the load for government and taxpayers.
For Genting Malaysia and Empire Resorts, none of this means stepping away from gaming in upstate New York. The core casino and gaming footprint under RWC remains untouched, and additional properties—the Resorts World Hudson Valley and the mobile sports betting brand Resorts World Bet—still round out Empire’s holdings.
In the end, it’s a complicated deal that says as much about creative corporate finance as it does smart positioning for the future. With debt in the rearview mirror and management anchored for decades to come, Genting Malaysia is making a statement not just about repayment, but about how companies in the leisure and gaming sector can pivot when the numbers demand it.
Source: Inside Asian Gaming (IAG)
