This archive report was first published on 16 August 2019.
On August 16, 2019, Genting Malaysia announced a bid to acquire Empire Resorts, the owner of the Monticello racino, in a deal valued at $1.2 billion. The proposal involves a partnership with Kien Huat Realty, which currently owns most of Empire Resorts' shares.
Under the agreement, Genting Malaysia would purchase existing stockholders' shares at $9.74 per share, a significant premium to the current market price of around $8.20. Genting officials claim that their offer is the 'best alternative available' to Empire's stockholders, citing the potential for a combined marketing approach and increased competitiveness in the northeastern US gaming market.
Industry expert Mr. Woinski notes that casinos in the United States tend to perform better when located on the peripheries of cities, where they can capitalize on a larger pool of potential gamblers.
Monticello, the site of the Empire Resorts casino, appears to be an ideal location for this strategy. The town's downtown area shows signs of economic decline, with empty storefronts and a lack of alternative entertainment options. In contrast, the casino itself remains a popular destination, with a range of games and activities available, including karaoke and live music.
One visitor to the casino, Ronnie Dimmie, a school bus driver from Washingtonville, NY, expressed her enthusiasm for the venue's social atmosphere, stating, 'We're having a great time. But gambling, staying up all night? Those days are over.'
