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Editorial: Casino must share its plan for success

Can we at least worry a little considering the numbers that came out in a story in the Times Herald-Record over the weekend? These were not “early” numbers in the sense that nobody expected much at this point. They were not unrealistic estimates imposed from outside or above. The take from table games and slot machines was about half of what the casino operators themselves had hoped they would be at this early date. They were well below the amounts that the people behind the casino expected when they were seeking one of the coveted licenses from the state. All this talk about the coming completion of the water park and more hotels and increased marketing are not comforting because all of those developments were not supposed to be in place by now. Once they are, the expectations for revenue will be even higher, making them that much harder to fulfill with such a poor start. While it is possible that the poor showing will be eclipsed by dramatic improvements over the next months, nobody who knows the industry is promising that. Ryan Eller, Empire Resorts' president and CEO, said “The results are indicative of a challenging marketplace … There’s a huge market out there, and we’re developing better ways to go after it.” They need to do that quickly because the people who determine the ultimate bottom line — the ability to pay off debt — are already squeezing. Moody’s, the credit rating agency, is already making it harder for the casino, downgrading the operating company’s debt to a low “negative” rating for debt “in poor standing” and threatening to push it lower should earnings remain weak.

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