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Catskills casino reports $37 million quarterly loss in revenues

Catskills casino reports 37 million quarterly loss in revenues

A report released by a new corporate earnings report and state Gaming Commission figures reveals that the revenues generated at Resorts World Catskills parent company is less than what is needed to cover casino's expenses.

Empire Resorts recorded a second-quarter loss of $37.2 million on revenue of $49.1 million and had operating expenses of $71.5 million.

The executive vice president of Empire Resorts, Charlie Degliomini refrained from commenting over company's performance this week.

"It will take time to penetrate the market and we will need some runway for doing that," he had said in an interview.

He had said that the casino was growing stronger and asserted an optimistic approach towards the benefits of its online presence.

"We have activated a million dollar summer marketing campaign with our multimedia marketing campaign and we are planning for bringing more attractions," he had added.

Casinos are making constant efforts for gaining a financial profit in New York state's young industry

The effort to gain financial momentum is a familiar one in New York state’s young casino industry. Resorts World Catskills is the fourth non-Indian casino to open in less than two years.

None of the new casinos generate surplus revenues in the first year but as time passes on, they get back on the track.

During the second quarter of the year, the casino has reported a $22.4 million operating loss, which excludes its $15 million of interest expense.

According to the reports of Moody’s, a healthy regional casino produces a 25 percent margin for earnings before interest, taxes, depreciation and amortization.