A struggling casino resort in upstate New York is getting a financial lifeline as a local economic development agency plans to raise $561 million through high-yield municipal bonds to purchase the non-gaming operations of Resorts World Catskills, aiming to preserve hundreds of jobs in the area.
The Sullivan County Resort Facilities Local Development Corporation, a not-for-profit established under New York economic-development law, is acquiring hotels, a golf course, spa, restaurants, and conference spaces from Genting Group subsidiaries. Genting will use the proceeds to buy the land underlying the resort, pay off debt due in 2026, and enter a long-term management agreement, according to spokesperson Meghan Taylor.
The deal comes amid economic strain in Sullivan County, which has seen job losses from a shuttered Frito-Lay plant and pandemic-related hits to tourism. The resort, which opened in 2018, has struggled to generate sufficient revenue. Future earnings may also be affected if New York approves new casinos near the city, potentially siphoning business from the Catskills property. Bond documents note that even one New York City casino could cut the resort’s gross gaming revenue by 26%, leading to the loss of 400 jobs and $2.3 million in local tax revenue.
The $561 million bonds are unrated and backed by revenues from the non-gaming segments of the resort, such as hotel rates and golf fees. They carry a 5.75% coupon and 6% yield, roughly 200 basis points higher than top-rated debt, reflecting higher risk. The bonds mature in 2040 and are currently not publicly traded, making liquidity limited, according to the prospectus.
High-yield municipal bonds have faced a challenging year, dropping nearly 1.6% in 2025, Bloomberg data show, in contrast to a roughly 5.9% gain in corporate junk bonds. KeyBanc Capital Markets is the sole underwriter for the deal, expected to price the bonds on August 27.
