Startup projections often are too optimistic, but a company needs the resources to weather the debt burden of construction and startup.ĭel Lago’s underwhelming performance has caused Moody’s to lower the casino’s bond rating and gave it a negative rating outlook.
One reason Del Lago is struggling is its revenues are far under the benchmarks stated by ownership when it was applying for a license. That decision appears to have produced an ownership group in the Del Lago resort which does not have proper resources.
When the New York Gaming Commission’s panel on casino applications chose 3 winners in December 2014, the siting panel chose local New York State developers, instead of the big Las Vegas casino companies or international operators like Genting Group. Located in the city of Tyre in Seneca County, the casino is facing major financial troubles, due to its inability to cover development debts according to a major credit agency. In fact, if the new resort does not increase its revenues by $100 million in 2018, Moody’s Investor Service its concerned about its debt structure. The Del Lago Casino is generating less revenue than expected in its first year of operation. Del Lago faced significant resistance from Tyre-area residents before building the resort.
