The Update Desk: Sports Betting and More

I've done several updates on the experiment with non-Native American casino gambling here in New York, most recently in April, when sports betting was approved, the new regs came out, and all that excitement filled the air. Here's Schenectady-area Assemblyman Angelo Santabarbara, quoted in the April post.

Allowing sports betting in our upstate casinos brings sports betting out of the shadows and at a benefit to the taxpayers. It levels the playing field so we can create a responsible market for sports betting in a safe regulated manner... The additional revenue to the state makes it a win-win. 

Well, sure, except for reports of revenue falling well short of projections in other states that have already moved forward. Sort of sounds familiar, doesn't it?

Anyway -- the sports books at Tioga Downs, Resorts World Catskills and the Rivers Casino in Schenectady were up and running earlier, and del Lago's opened last Friday, with former SU and Philadelphia Eagles QB placing the first bet. I'll give an update on this latest "win-win" gamble once we have some data.

There are ownership changes on tap at two casinos. First, Wilmorite, the developer of del Lago and several shopping malls in the CNY area, is getting out of the casino owner business. The company, owned by the Wilmot family, is selling its shares to the property's co-owner, Peninsula Pacific. The investment firm's chairman and managing partner, M. Brent Stevens, said

This will position Peninsula Pacific as the sole owner of the property and signals our further commitment to be the premier source of gaming and entertainment in the Finger Lakes region. 

Stevens made it clear Peninsula Pacific is aware of the financial situation with del Lago and the other casinos in New York. noting

Sure, it has been disappointing. Sure, there are structural issues in the overall gaming market in upstate New York, But in the long term, we have faith in this property and we are as excited today as we ever have been about the ability to do the right thing, to grow our operations and have the right things happen within the broader industry in New York. 

Speaking on behalf of Wilmorite, chairman Thomas Wilmot Sr. said

del Lago Resort and Casino is good for our community - it has created employment opportunities, an entertainment destination and a new stream of revenue for the town and county. The continued success of del Lago is good for everyone in the Finger Lakes region.  

Meanwhile, Empire Resorts, the public company that runs the $1.2B Resorts World Catskills property, is losing money and suggested that bankruptcy might be the answer. In the end, Empire reached a deal to sell its stake to the majority owner, Kien Huat Realty and Genting Malaysia. The buyers are paying nearly $10 per share of Empire Resorts, about 15% higher than the trading price when the deal was announced. There's also an increased funding commitment - $77M - which will help with debt repayment.

Genting Americas president Ed Farrell said in an interview

We're in a unique position where we can assist with the management of Resorts World Catskills through our Resorts World New York property at a low costs. We can bring synergies to both projects and by just operating at a higher sale, we're going to be able to put the cost structure in a way that Resorts World Catskills can turn to black and we can make money going forward.

Are you a gambler? How much would you wager on any of the casinos turning things around, either through sports betting or the ownership changes?

Given their collective track record, I'm out.