The Greenbrier Casino will remain operational despite the recent sale of the historic resort to a private equity group that is still awaiting approval for a gaming license in West Virginia.
The Justice family, led by former Gov. and US Sen. Jim Justice (R-WV), recently finalized a $500 million transaction with New York financial firm Kennedy Lewis Investment Management (KLIM), giving KLIM a 51% stake in the luxury resort located in West Virginia’s Allegheny Mountains.
The West Virginia Lottery Commission expressed concerns that The Greenbrier did not properly disclose details of the transaction, but confirmed that the Casino Club can remain open under certain conditions until KLIM and its key personnel pass a suitability review.
“You will be in compliance with the law so long as the unapproved board members of the holding company exert no authority over the operations of the casino. And, as a result, the casino can continue to operate prior to the final vote of the Commission,” stated David Bradley, the acting director of the West Virginia Lottery Commission.
The sale forms a new parent company named Greenbrier TopCo, with the Justice family retaining a 49% share.
Casino Saved
The Greenbrier Casino faced delays in submitting financial disclosures to the Lottery before its license renewal and the proposed KLIM acquisition. The casino attributed the delays to high turnover in its accounting department.
Despite the delay, the Lottery has allowed the Casino Club to continue operating as a review of KLIM is conducted, preserving approximately 90 jobs and the state tax revenue generated by the casino.
Sen. Justice, who rescued The Greenbrier in 2009, played a significant role in introducing casino gambling to the property. The small gaming facility helped stabilize the resort following its purchase out of bankruptcy by the Justice family.
The $500 million KLIM deal enables The Greenbrier to prevent a receivership attempt by Omni Hotels, address significant debts, and undertake long-awaited renovations.
Political Rivals
Gov. Patrick Morrisey, though a fellow Republican, has had a strained relationship with Justice. Morrisey lauded the KLIM deal while subtly criticizing the Justice family.
“I’m hopeful that Kennedy Lewis and the entire Greenbrier team will help restore the beauty of the resort to its former glory,” Morrisey commented.
Morrisey also claimed credit for safeguarding the casino during the ownership transition.
“I have asked the Lottery Commission to take all necessary steps to prevent the loss of Greenbrier employees during this transition of ownership,” added the governor.