Empire Resorts
TypePublic
IndustryGaming
GenreGaming holding company
Founded2003 (2003)
Headquarters
Monticello, New York
,
United States
Owner
Websiteempireresorts.com
Monticello Raceway

Empire Resorts is a gaming company that owns and operates Resorts World Catskills and Monticello Raceway in the Catskill Mountains, 90 miles (140 km) from New York City. Headquartered in Monticello, New York, Empire Resorts is owned by affiliates of the Genting Group (with a 51% stake held by Kien Huat Realty and 49% by Genting Malaysia).

History

Empire Resorts was founded in 2003 through a consolidation of Alpha Hospitality and Catskill Development LLC, a company that had purchased the Monticello Raceway in 1996.[1][2] The consolidation was carried out by Robert A. Berman, who in the previous year had been offered control as CEO of Alpha Hospitality by Stanley Tollman.[3][4]

In 2003, Berman restructured Alpha Hospitality after principal shareholders of the Bryanston Group (Alpha Hopitality's controlling shareholder) were indicted on tax-related charges.[5][6] Berman restored financial stability by selling off non-essential gaming assets and merging the company with Catskill Development LLC, which led to the creation of Empire Resorts that same year. During this time Berman also arranged for Empire Resorts to sell common stock through Jefferies Group.[7][8] [9] This resulted in Empire Resorts receiving over $35 million in new funding.

In 2003 Empire Resorts became a NASDAQ Global Market company,[10] trading under the ticker symbol "NYNY." In 2004 Empire Resorts entered into an agreement to purchase the Concord Resort Hotel from Louis R. Cappelli.[11][12] The transaction was later modified by Kien Huat Realty, which gave way to the $1.5 billion resort project currently financed and under construction by Empire Resorts.[13][14] The project is located on the site of Adelaar, a resort developed by Entertainment Properties Trust within the Concord Resort Hotel.[15] The entertainment complex will include an 80,000 sq. ft. casino, multiple hotel properties, waterparks, and a retail village, dining and entertainment areas.[16][17] The project is expected to be concluded by 2018.

In 2009, Kien Huat Realty invested a further $55 million in new equity capital, which represented just below 50% of the voting power of Empire Resorts.[18][19] Kien Huat is an investment branch of the Genting Group, a large leisure and gambling conglomerate founded by Malaysian entrepreneur Lim Goh Tong.[20] Kien Huat, which had previously financed the startup of Foxwoods Resort Casino and the Seneca Niagara Casino & Hotel in New York, was fronted by CEO Lim Kok Thay (Lim Goh Tong's son).[21][22]

In 2010 the Genting Group won a bid to build a racino similar to what it owned in Monticello at Aqueduct Racetrack in New York City.[23] In December 2015, Empire Resorts received a full gaming license for Montreign Resort Casino in New York.[24] In February 2016, Kien Huat Realty purchased $290 million worth of shares, giving the firm 88.7% ownership of Empire Resorts.[25]

Empire Resorts currently owns and manages several subsidiaries in the hospitality and gaming industries. The company owns and operates Monticello Raceway and casino in New York through its subsidiary, Monticello Raceway Management, Inc. The 230-acre (93 ha) property is located approximately 90 miles northwest of New York City. The complex offers over 1,110 VGMs, with over 40 electronic table game positions, over 1,000 video lottery terminal slot machines, electronic table games, and one of the largest all-weather harness horse racing tracks in the nation.

On January 23, 2019, Empire announced that it would close Monticello Casino's VGM operations “on or about April 23,” 2019. Empire CEO Ryan Eller said the closure was intended to “improve revenue performance at our nearby Resorts World Catskills property.” Monticello's racing operations will remain open.[26]

In November 2019, Kien Huat Realty and Genting Malaysia took Empire Resorts private, buying all outstanding shares.[27][28] The transaction left Kien Huat with a 51% stake in the company and Genting Malaysia with 49%.[28]

References

  1. ↑ "Company Overview of Empire Resorts Inc., Prior to Reverse Merger with Catskill Development, LLC". Bloomberg.
  2. ↑ "Alpha Hospitality to Become 'Empire Resorts, Inc.' Trading on Nasdaq under New Symbol: NYNY". Businesswire.
  3. ↑ "Empire Resorts, Inc". Reference for Business.
  4. ↑ "As Catskill Casino Takes Shape, It Is Beyond One Backer's Grasp". The New York Times.
  5. ↑ "In-houser charged with fraud and tax evasion". The Lawyer.
  6. ↑ "Tax Fugitive's Son Pleads Guilty to Evasion Charges". The New York Times.
  7. ↑ "In Catskills, the Long Wait for a Casino Nears an End". The New York Times.
  8. ↑ "Empire Resorts, Inc. History". Funding Universe.
  9. ↑ "Empire Resorts, Inc". NASDAQ.
  10. ↑ "Empire Resorts, Inc". NASDAQ.
  11. ↑ "Developers plan $700 million gaming resort in Catskills". Indian Country News.
  12. ↑ "Empire Resorts and Concord Associates Conclude Agreement to Develop a $700 Million Entertainment and Gaming Complex in the Catskills". Business Wire.
  13. ↑ "As Catskill Casino Takes Shape, It Is Beyond One Backer's Grasp". The New York Times.
  14. ↑ "Alpha Hospitality to Become 'Empire Resorts, Inc.' Trading on Nasdaq under New Symbol: NYNY". Business Wire.
  15. ↑ "Louis Cappelli, Who Bought th Bankrupt Concord Resort Hotel for $10.25 million in 1999, Hopes to Land an Indian Casino". Hotel Online.
  16. ↑ "Major Resort Developments to Provide Significant Economic Boost to Region". Realstate In Depth.
  17. ↑ "Empire Resorts and EPR Properties Showcase $1 Billion Entertainment Lifestyle Complex to the New York Gaming Facility Location Board". Business Wire.
  18. ↑ "Empire Resorts Concludes $55,000,000 Investment Agreement with Kien Huat Realty III Limited". Euro Investor.
  19. ↑ "What's Planned For The Adelaar Resort Complex?". Gunk Journal.
  20. ↑ "Malaysian Developer Wins Big From NY's Decision on Casino Locations". Wall Street Journal.
  21. ↑ "Top Asian In US Gaming Takes Desert, Mountains, Wants Beach For Only Truly Global Casino Brand". Forbes.
  22. ↑ "Genting grows business in US and South Korea". The Star.
  23. ↑ "Genting Bets Big on Resort Casino at Aqueduct". Wall Street Journal.
  24. ↑ "Genting Malaysia Big Apple acquisition for possible new U.S. projects". World Casino.
  25. ↑ "Empire Resorts' largest shareholder buys nearly $290M of additional shares". Record Online.
  26. ↑ Spector, Joseph. "Monticello Raceway to close its casino operations, but keep racetrack open". The Poughkeepsie Journal. Retrieved 24 January 2019.
  27. ↑ Form 8-K: Current Report (Report). Empire Resorts. November 15, 2019 – via EDGAR.
  28. 1 2 Joseph Spector (November 13, 2019). "Resorts World Catskills has a new owner, officially, as 'new chapter' begins for NY casino". Poughkeepsie Journal. Retrieved 2022-03-27.
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