MONTICELLO, NY -- The owner of the state's largest new casino -- built to help boost the Catskills economy -- lost $58 million in its first five months,  and $37.2 million of that in the second quarter alone.

Empire Resorts, which owns the big new Resorts World Catskills casino and the older and smaller nearby Monticello Raceway, reported the losses in a quarterly filing to the U.S. Securities & Exchange Commission for the period ending June 30.

The filing also showed the company with $462 million in long-term debts as of June 30. The statements cover the operations of both the big full-service casino and the raceway, which combines a harness track and slots.

In its filing, Empire Resorts acknowledged the challenges it faces and warned it may need to raise more cash or take on even more debt.

"We cannot be certain that our business will generate sufficient cash flow from operations, that our anticipated earnings from the Casino will be realized, or that future borrowings will be available under our existing debt arrangements or otherwise to enable us to service our indebtedness or to make anticipated capital expenditures," the company said in the SEC filing." ...  Our future operating performance and our ability to service our debt will be subject to future economic conditions and to financial, business and other factors, many of which are beyond our control."

In June, the Moody's Investor Service downgraded Resorts World Catskills' rating and increased its risk of default after determining that its revenues are falling short. Moody's based that partly on an analysis showing the casino is likely to have gaming revenues of about $150 million this year, far short of the estimated $250 million.

It's a scenario familiar across the Upstate casino market, which many experts say is oversaturated.

The $1.2 billion Resorts World Catskills opened Feb. 8 in the town of Thompson near Monticello in Sullivan County. It's on the site of the former Concord Hotel, once the largest resort in the Catskills' "Borscht Belt" heyday.

The opening has come in phases -- it has been expanding its gaming, hotel rooms, dining options and other amenities since the February opening. It plans to open a $33 million entertainment venue and second hotel in December, and a golf course and indoor waterpark in 2019.

The majority shareholder of Empire Resorts is K.T. Lim, a billionaire Malaysian gaming magnate. He is chairman of the Genting Group, operator of casinos and resorts around the world -- including those under the Resorts World name. In this case, Empire Resorts is the owner, and it is operating as a Resorts World under a license with Genting.

Resorts World Caskills is the fourth and most recent non-Indian nation-owned casino to open in Upstate New York in the past two years. It joines Tioga Downs in the Southern Tier, which opened in December 2016; and del Lago Resort & Casino near Waterloo in the Finger Lakes and Rivers Casino & Resort in Schenectady, both of which opened in February 2017.

The state authorized these commercial casinos to operate in areas not covered by gaming compacts with Indian nations. The Mohawks, Oneidas and Senecas operate seven full-service casinos Upstate. each Indian nation has exclusive rights to operate casinos in specific multi-county regions.

All of the new casinos have fallen far short of the revenue estimates they gave the state when competing for their licenses in 2016. Moody's has declared that del Lago is in danger of not being able to pay its debts.

At least two of the new casinos, del Lago and Rivers, made informal efforts this year to seek economic relief from the state, such as tax or fee cuts. Those efforts were rejected.

Gaming analysts have warned that the Upstate casino market is oversaturated. Resort World had hoped to counteract that because of closer location to New York City (about 90 miles), and its efforts to lure the Asian and Asian-American gaming market.

There has been some hope that sports betting could be a lifeline for the Upstate casinos, now that the U.S. Supreme Court has ruled that states other than Nevada can offer it. So far, only Delaware, New Jersey and Mississippi have legalized sports books under that ruling.

A 2016 New York law allows the four new Upstate casinos to operate sports books, but the state legislature failed to update that law in its most recent session and the state gaming commission has not yet set up rules for issuing licenses.

Don Cazentre writes about Upstate NY casinos for NYup.com, syracuse.com and The Post-Standard. Reach him at  This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or follow him at NYup.com, on Twitter or Facebook.