Empire Resorts to Close Monticello Raceway Casino

Casino Stocks (note, I researched these about a couple of weeks ago) Casinos are a dangerous business to get into. At first, you may be interested in investing into Casino stocks since many people go to casinos. When I was growing up, I went to Grand Casino in Hinckley, MN and Black Bear Casino in Carlton, MN with my parents. The sounds of playing Hot Shots Progressive, betting $5 on Blackjack, and coming out with $100 more than I did coming in were part of an entertaining evenings.
Investing into Casinos, however, are different. Most casinos have lots of debt - more than what the company is earning. Some casinos lose money because they cannot convert revenue into profit. The debt yield of a casino is often higher than Government bonds.
In order to compare casino debt yields to Government yields, let us use the allegory of the condom. Using a condom is akin to investing into Government bonds. It is highly unlikely to break (the condom), and it is highly unlikely that the country (America) will collapse - even with Donald Trump as President. The yield may not be as high as company yields, but, is still profitable
Now imagine if one does not use a condom. It is possible that one might not get pregnant. However, the odds favor pregnancy. Casino yields are just like that. It is possible that one may profit a lot from casino yields - which offers higher yields than Government yields - however, the risk of insolvency due to huge debt is not worth non using a condom.
Junk bonds, or high yield bonds, are bonds that are riskier than normal bonds because there is a risk of insolvency. Casinos frequently are junk bonds.
Today, I will show you three examples of companies that specialize in Casinos and specialize in near insolvency.

MGM Resorts International (MGM) is a well known casino in Las Vegas. The question is, is the company financially solvent? Let us find out. MGM has $10.77 billion in revenue. MGM also has $2.10 billion in net income. The equity of MGM is $11.65 billion. This is where the good part ends. MGM has $12.92 billion in debt, meaning that there is more debt than what the company is worth. The company’s bond is so disastrous, that the company’s debt yield is 7.75%, maturing in 3/15/2022. Wynn Resorts (WYNN) is owned by elderly Steve Wynn. The company has a casino in Las Vegas, and a casino in Macau. The goal of Wynn is to profit from international gamblers while profiting from domestic ones as well. The company has $6.31 billion in revenue. The company, last year, made a profit of $747.18 million. WYNN also has $1.08 billion in equity. That is where the good news ends. WYNN has $9.81 billion in debt. It has more debt than revenue, meaning that the company makes less than its’ debt. The company’s long-term-debt-to-equity is 4.82. To bond holders, the bond is 5.5%, maturing in 2020.

Investing to this stock is risky. The company needs to spend over a decade’s worth of net income in order to pay off their debt. This is impossible, since the owner, Steve Wynn, is not only elderly, but, has sexual assault allegations.

Empire Resorts (NYNY) is the final example of Casino companies who cannot handle their weight. NYNY reported $157.80 million in revenue. The owner of the state's largest new casino -- built to help boost the Catskills economy -- lost $37.2 million in the second quarter alone, $33.72 million in the third quarter.

Funny, isn’t it? A casino company, who is supposed to make money, is losing money.

Empire Resorts, which owns the big new Resorts World Catskills casino and the older and smaller nearby Monticello Raceway, reported the losses in a quarterly filing to the U.S. Securities & Exchange Commission for the period ending June 30th and September 30th. The filing also showed the company with $462 million in long-term debts as of June 30. Now, you could argue that the company could simply pay off the debts with cash, right? Wrong. The company only has $18.39 million in cash.

The company’s equity is $184.87 million in equity. In other words, the company is more in debt that what it is worth. Furthermore, the company has no dividend, meaning that the company has no money to borrow for their extraordinarily high debt. NYNY’s long-term-debt-to-equity is 2.91.
Conclusion

In conclusion, even the best Casino companies are in danger of insolvency due to large debt, low net income, and low equity.

Privacy Policy © 2018 Empire Resorts. All rights reserved. MONTICELLO, NY 12701. AT RESORTS WORLD CATSKILLS. HOURS. CLOSED MON & TUES. WED - SUN 4PM TO 10PM - NOTE LAST SEATING AT 8:30PM - CONTACT. 845.428.7497. [email protected]. Subscribe. Sign up with your email address to receive news and updates. First Name. Last Name. Email Address. Sign Up. View heavy construction project updates including photos and/or videos for the Empire Casino & Resort project in Monticello, New York by Petillo Inc. Empire Casino Monticello Ny exciting to play online. Roulette requires no skill to play, although it is helpful to learn the best bets to make. Live dealer roulette is the most exciting game to play on online casinos, but bettors Empire Casino Monticello Ny can find other roulette games to play online, too. He contends Empire Resorts, the casino’s parent, has kept Monticello’s track closed, despite all of New York’s other harness and horse racing tracks being allowed to open since June, as leverage while casino leaders tried to renegotiate the horsemen’s contract. The contract has four years left on it, Faraldo said. Get with the program. M life Rewards gets you access to the best MGM Resorts has to offer. Join today and receive: • Up to 15% off room rates • Pre-sale ticket offers to world-class entertainment The casino at Monticello Raceway in Upstate New York is set to close on or around April 23, according to a filing this week to the Securities and Exchange Commission by its parent company, Empire ... The integrated casino resort includes an 18-story all-suite hotel and a casino and entertainment complex featuring 100,000 square feet of gaming action including 150 live Las-Vegas style table games, 2,150 state-of-the art slot machines, a poker room and private gaming salons. New York casino operator Empire Resorts is shutting down slots operations at the Monticello Casino & Raceway to avoid cannibalizing its new Catskills property.. On Tuesday, Empire informed the US ... Empire Resorts owns and operates Resorts World Catskills, a casino complex in upstate New York, approximately 90 miles (144 kilometres) from New York City. It opened in February 2018 and has a 332 all-suite hotel, 1,600 slot machines and over 150 live table games, according to company information.

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