Resorts World Casino Scores $290M Refi for Aqueduct Racetrack
According to The Real Deal, Resorts World Casino at Aqueduct Racetrack pulled in $290 million in order to refinance the property last Thursday.
The funding, provided by Wells Fargo, is $82 million in new financing, which replaces the principal on a $225 million loan the bank issued last year, reports The Real Deal.
Resorts World Casino operates its complex at 110-00 Rockaway Boulevard in Queens and had announced last year that it was planning a $400 million expansion of the property, says The Real Deal.
The expansion would add 750,000 square feet to the complex including a 400-key hotel, a 20,000-square-foot spa, 140,000 square feet of convention space and also add 1,000 new video-lottery terminals to be added to the already existing 5,500 gambling machines, reports The Real Deal.
The plan was to start construction on the parking lot west of the existing casino and if approved properly by two agencies, the New York State Gaming Commission and the Franchise Oversight Board, the addition could be completed by April 2019, reports The Real Deal.
"This new expansion, and its corresponding increase in visitation to our facility, will result in a boost in revenue for both New York's education fund and the state's horse-racing industry," said Michael Levoff, Genting Group’s senior vice president of public affairs.
A deal with lawmakers was made so that Resorts World Casino could include the additional gaming machines at a gambling parlor in Nassau County, where Malaysia-based Genting Group who operates the casino, will avoid gambling competition in a nearby county and Nassau Regional Off-Track Betting Corp. will avoid having to operate an additional gambling facility, reports The Wall Street Journal.
Some of the revenue from the new video-lottery games will go to Nassau County, while other portions of the revenue would go to the state education fund and support horse racing and breeding, says The Journal.
Spokesman for Norma Gonsalves, presiding officer of the Nassau County Legislature said that the Long Island County expects to recieve at least $9 million in returns from the new machines in just the first year of operation and in each of the following years Nassau County could get up to $25 million, reports The Journal.
However there are concerns about how much of a cut Nassau will get from the video-lottery machine’s revenue.
"You're taking some revenue away from what might otherwise go to the racing industry and also you're taking, to a certain extent, some of that money that might have gone to education,” said Bennett Liebman, interim director for Albany Law School’s Government Law Center.
Representatives from Wells Fargo and Resorts World Casino could not be immediately reached for comment.
Resorts World Casino at Aqueduct Racetrack pulled in $290 million in order to refinance the property