blog image

In a decisive move to strengthen its financial footing in the United States, Genting Malaysia has unveiled a strategic restructuring plan designed to eliminate the debt burden of its wholly owned subsidiary, Empire Resorts. The company intends to launch a sale-and-lease-back arrangement involving key non-gaming assets of Resorts World Catskills (RWC) and associated developments in upstate New York. The deal marks a pivotal shift in the company’s strategic priorities and regional positioning.

Empire Resorts plans to sell a portfolio of prominent non-gaming assets—including the 332-room Resorts World Catskills hotel, the 99-room Alder Hotel, the Monster Golf Course, the 2,500-seat concert venue RWC Epicenter, and multiple dining outlets—to the Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525 million in cash. Following the sale, Genting Malaysia’s U.S. arm will purchase 1,554.6 acres of land from EPR Properties—comprising the parcels housing the RWC infrastructure and adjacent land—for US$201.3 million.

Under the terms, SCRFLDC will lease back the non-gaming assets to Empire under a 20-year management agreement—complete with two automatic five-year renewals—and Empire will lease the land until February 15, 2066. This arrangement enables Empire Resorts to redeem its US$300 million in 7.75% senior unsecured notes due November 1, 2026, effectively rendering the subsidiary debt-free and unlocking approximately US$10 million in surplus working capital.

Genting Malaysia emphasised that the restructuring not only rescinds lease and interest burdens but also consolidates ownership of expansive land assets—including 420 acres underpinning the current RWC site and 1,134.6 acres of undeveloped land with future growth potential—sharpening the company’s long-term strategic flexibility. Additionally, the restructuring reinforces Genting Malaysia’s commitment to strengthening its competitive position within the New York State gaming market and broader northeastern U.S. region.

This deal builds upon earlier strategic moves by Genting Malaysia. In May 2025, the company acquired full ownership of Empire Resorts—purchasing the remaining 51% stake from the Lim family vehicle—including accepting a US$39.7 million intercompany loan—thereby consolidating control and simplifying its U.S. operations.

Financial analysts have noted challenges in Empire’s performance despite heavy investment, prompting skeptics to question the path to sustained profitability. Nonetheless, this latest restructuring signals Genting Malaysia’s determination to revitalize and streamline its U.S. gaming portfolio by focusing on core operations and de-leveraging debt-laden assets.

In summary, Genting Malaysia's innovative sale-and-lease-back maneuver in New York represents a bold pivot—transforming Empire Resorts into a leaner, debt-free entity with expanded land holdings and greater operational agility. This repositioning may well mark a turning point in its U.S. growth trajectory.