The Greenbrier Casino Club may face closure as the resort pursues a refinancing arrangement with a private equity firm from New York, aiming to prevent a takeover from the proprietors of its competitor, The Homestead.
The Justice family, owners of the historic Greenbrier in White Sulphur Springs, West Virginia, claims the West Virginia Lottery is delaying a significant $500 million financing agreement with Kennedy Lewis Investment Management (KLIM). This funding is essential for the Greenbrier to clear debts owed to Omni Hotels, which operates its competitor, The Homestead, located in nearby Hot Springs, Virginia.
According to a legal document, the Justices assert that the Lottery, which oversees casino gambling in West Virginia, has not yet endorsed the KLIM loan. The execution of this loan would lead to the establishment of Greenbrier TopCo, with KLIM acquiring a controlling interest of 51%.
Since the Justices aim to transfer a majority stake in the resort, the West Virginia Lottery is required to conduct a suitability evaluation of KLIM before it can be associated with a state-issued gaming license. This delay prompted the Justices to announce the potential closing of the Casino Club to proceed with the KLIM transaction.
Proposed Casino Club Shutdown
The Greenbrier is attempting to avert receivership, which Omni Hotels and its subsidiary, White Sulphur Springs Holdings, LLC, have urged West Virginia’s Southern District Court to enforce. In March 2026, Omni acquired a loan associated with The Greenbrier from Virginia’s Carter Bank.
The $289.5 million loan reached maturity on April 1, 2026, and Omni claims it remains unpaid. The Justice family contends that Carter Bank should not have transferred the debt to a competitor, framing it as a “fraudulent conspiracy” in their court filings. Their intention is to settle Omni’s debt through the KLIM financing while allocating any excess funds for overdue tax liabilities and necessary property improvements.
The daily interest on the $289.5 million loan is reported to be approximately $145,000.
“Faced with no other viable options to finalize the transaction and prevent escalating delay costs, The Greenbrier therefore plans to shut down the casino and conclude the transaction on Friday (Aug. 14),” the Justices stated in their court documents.
The Casino Club is a private boutique casino employing around 90 staff members, featuring 160 slot machines, 30 table games, and a FanDuel Sportsbook.
Lottery Challenges Greenbrier’s Assertions
In a strongly worded correspondence addressed to Greenbrier attorney Steven Ruby, David Bradley, the acting director of the West Virginia Lottery, expressed his concerns regarding the resort’s court statements.
Bradley emphasized that the Lottery has been transparent about its need to evaluate KLIM’s suitability thoroughly. He attributed the delay to The Greenbrier’s lack of sufficient notice for the Lottery to assess the proposed ownership changes.
“You did not provide the Lottery with necessary final draft documents regarding the transactions until Aug. 5, 2026. Moreover, you only reached out to me to request a special meeting that same afternoon. The special meeting you sought for Aug. 7 would have contravened the West Virginia Open Governmental Proceedings Act, requiring public bodies, including the Lottery Commission, to announce ‘notice of a special meeting’ on the Secretary of State’s website at least five business days prior,” Bradley explained.
“It is crucial for the Lottery to have adequate time to finalize its due diligence and adhere to the Open Governmental Meeting Act when scheduling its meetings. We will not permit anyone, regardless of their status, to coerce us into disregarding this law,” Bradley concluded.