Sullivan County's Half-Billion Dollar Casino Gamble: A Bad Bet on Our Future

Dear Friends and Neighbors

Sullivan County leaders are preparing to gamble more than half a billion dollars on a bailout of Resorts World Catskills. The Local Development Corporation, (spun out of the IDA), has issued $585 million in bonds to buy the casino’s non-gaming assets—hotels, a golf course, event venues, and 1,700 acres of property. Resorts World will continue to manage these properties under a long-term contract.

Officials call this a “win-win”: Resorts World sheds debt, the county takes ownership, and jobs are preserved. But the real question is this: what happens if revenues fall short and the bond cannot be repaid?

The Risks They Won’t Admit

The fact is that there will be state-approved casinos in New York City fully operating in 5 or more years. The only reason the Resorts World Casino survives is because of customers from NYC. The county’s own consultants warned against the rosy projections used to justify the deal. Cushman & Wakefield projected hotel occupancy dropping to 60% by 2029, not rising to 86% as the bond pitch claims. Capacity Consulting cautioned revenues could collapse by up to 76% once New York City casinos open. Those warnings were ignored.

Recent financial data shows a 13% revenue decline this year and zero income from sports betting—further proof that the casino’s financial foundation is unstable.

Supporters say the bonds are “non-recourse” and taxpayers won’t be on the hook. But history tells us otherwise. When public authorities default, county credit ratings drop. That triggers political pressure to stabilize finances—often through tax hikes. So while no one will admit it today, Sullivan County homeowners could very well see this gamble show up on their tax bills tomorrow.

A Fire Sale Waiting to Happen

If revenues don’t cover the debt, bondholders will demand action. The likely outcome is a fire sale of our county’s largest hospitality assets at cut-rate prices. And we already know who’s circling: powerful outside developers with deep pockets, little interest in tourism, and plenty of political influence.

Instead of strengthening local business, these properties could be carved into dense housing projects, private developments, or speculative holdings that bring no benefit to the community.

Who Really Benefits?

Sullivan County has already given Resorts World over $50 million in tax breaks. Meanwhile, the casino’s owners are investing heavily in downstate projects that directly compete with us. One justification offered for this bailout is “cross-marketing” with a future New York City casino—a questionable promise that relies on trust rather than clear financial benefit.

Why should we keep propping up a billion-dollar corporation that has never lived up to its promises here?

Adding to the concern, the Town of Thompson now depends on casino-related revenues for nearly 30% of its annual budget—making local finances more vulnerable than ever if this deal fails.

And who is watching the money? The head of the IDA is the face of this deal. But this isn’t his money he’s risking—it’s the county’s reputation, credit standing, and future.

Equally troubling is the silence of local officials when questioned about the details of this arrangement—leaving residents without answers about the long-term risks.

The Bigger Picture

The Catskills are already under pressure from overdevelopment, shrinking water resources, and loss of rural quality of life. Borrowing half a billion dollars to tie our future to a struggling resort is not diversification—it’s dependency. And dependency makes us vulnerable.

At the same time, developers continue pushing the Adelaar housing project as part of the “resort community” vision—raising new concerns that this bailout could fuel the very overdevelopment threatening the region.

What We Need

Instead of doubling down on a casino bailout, Sullivan County should be investing in real community needs:
• Aquifer study
• Water and sewer infrastructure
• Healthcare
• Affordable housing
• Small business support and recreation facilities.

A large state grant remains unused because the town never provided the matching funds needed to build a sports center on the SUNY campus—a project that would create jobs, support community growth, and bring a lasting boost to the area.

Bankruptcy is not the end of the world. Companies restructure all the time. What would be disastrous is throwing away our credibility and our future on a deal our own experts have already called a bad bet.

The Bottom Line

This $585 million bailout has too many unanswered questions, too much hidden risk, and too much at stake. With declining revenues, heavy fiscal dependence, and absent transparency from officials, Sullivan County residents deserve transparency, accountability, and a seat at the table. Until then, the smart move is simple: walk away.

There will be an election for Town Board this fall. Several current members will be running for re-election. Fallsburg Future has decided to publish a weekly newsletter highlighting the issues that face the residents and the town. Each newsletter will highlight a particular topic of concern as well as an overview of a particular issue. We have had technical issues with our email service. It has been corrected and you are able to respond to this email.

Fallsburg's Future is a community network of concerned Fallsburg residents established in January 2016. Its Mission is to help guide the urban development of the town of Fallsburg and its five hamlets, to promote its sustainable economic development, protect the fragile beauty of its natural habitats and enhance the opportunities and quality of life for all its residents and visitors. We hope to curb the suburban sprawl that is threatening to overwhelm the town’s physical infrastructure and destroy the natural beauty that the area depends on for its future development. See us on Facebook and our website Fallsburgsfuture.com.