Can new ownership and a new boss reverse the sagging fortunes of New York’s Resorts World Catskills?
Genting Group, the global resort conglomerate that has backed the $1 billion casino hotel and its now-defunct parent company, Empire Resorts, says yes.
After moving earlier this year to take debt-laden Empire private and take direct control of the struggling Resorts World Catskills in the process Genting has announced the appointment of industry veteran Robert DeSalvio, late of Encore Boston Harbor, to direct a turnaround.
DeSalvio will head Genting New York, which means he’s also taking charge of Resorts World New York City. The aim is to tie the two operations and their databases together, and address the underperformance in the Catskills by tapping into the success of the mega-racino at Aqueduct Racetrack in Queens.
“Bob’s operational expertise combined with his unique ability to recognize industry trends and adapt to fast-evolving consumer demands will help accelerate growth at Resorts World Catskills and Resorts World Casino New York City,” said Genting Chairman and CEO Lim Kok Thay.
DeSalvio replaces Empire CEO Ryan Eller, who will step down following a “brief transition period,” Genting said. Edward Farrell will continue as president of Genting Americas and will assist DeSalvio with the integration of Resorts World Catskills into the larger Genting picture. Scott Molina will remain president of Resorts World NYC and will report to DeSalvio.
As the largest and most expensive of the four commercial casinos that opened in upstate New York beginning late in 2016, Resorts World Catskills has become emblematic of the struggles of the group, all of which have fallen short of their revenue projections in a market crowded with gaming options, including seven full-scale tribal casinos.
Earlier this year, Empire got state permission to shut down some 25 percent of RWC’s slot floor in a battle to shore up revenues that have been at or near the bottom of the commercial market in terms of unit win per day.
Empire also sought to cut its losses by closing the racino at the company’s nearby Monticello Raceway. But with insolvency looming, Lim, whose entities held the majority of Empire’s shares, quickly formed a joint venture with his separately traded Genting Malaysia subsidiary to buy out the other shareholders in a deal that closed in November.
In this sense, DeSalvio was on target in saying, “Resorts World Casino New York City and Resorts World Catskills represent the future of gaming and hospitality in New York State.”
A well-known face in Northeast gaming dating back to the ’90s, DeSalvio got high marks from the Boston-area community for steering Wynn Resorts’ Encore to completion through the Steve Wynn sexual harassment scandal before leaving in October, just four months after the $2.6 billion casino hotel opened.
Previously, he’d overseen the completion and opening of Las Vegas Sands’ Sands Bethlehem in eastern Pennsylvania and served eight years as president of the $840 million property at a time when it was the undisputed leader in table games revenue in the state. (LVS has since sold the property.) Prior to that, he spent 10 years at Foxwoods, where he headed marketing.
He said he sees gaming in New York as “full of untapped potential.”
Certainly he’ll have a lot to work with. As he put it, “Guests today are seeking that unique combination of gaming excitement, entertainment offerings, luxurious non-gaming amenities, and convenience, which only this brand can offer.”
Resorts World NYC, with more than 4,000 machine games, is the largest and highest-grossing racino in the United States and is adding a 400-room hotel slated to open in the summer. Genting is also hopeful of eventually obtaining table games for the property.
At Resorts World Catskills, the woeful performance history aside, DeSalvio will have the advantage of live table gaming, 150 tables in all, including a number of private salons for high-stakes wagering. He’s also got some 1,600 machine games, a sportsbook, a poker room and a 332-suite hotel.
