The Greenbrier Casino Stays Open as Historic Resort Sold to New York Private Equity Firm

The Casino Club at The Greenbrier will remain open despite the historic resort’s sale to a private equity group that has not yet received approval to possess a gaming license in West Virginia.

The Justice family, led by former Gov. and US Sen. Jim Justice (R-WV), on Friday (Aug. 14) completed a $500 million transaction with New York financial firm Kennedy Lewis Investment Management (KLIM). The financing deal gives KLIM a 51% ownership position in the luxury resort located in West Virginia’s Allegheny Mountains.

Officials with the West Virginia Lottery Commission said details surrounding the transaction weren’t properly filed with the state gaming authority, which led to concerns that the Casino Club would close to allow the $500 million deal to go through. After several sternly worded letters from the agency to The Greenbrier, gaming regulators said the private guest- and members-only casino can remain open, so long as the new owners do not have any operational control until the Lottery completes a suitability review of KLIM and its key personnel.

“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,” David Bradley, the acting director of the West Virginia Lottery Commission, wrote The Greenbrier.

The deal forms a new parent entity of The Greenbrier called Greenbrier TopCo, with the Justice family retaining the remaining 49%.

Casino Saved

The Greenbrier Casino failed to timely report various financial disclosures to the Lottery ahead of its five-year license renewal and proposed KLIM takeover. Greenbrier representatives blamed the delay on high staff turnover within its accounting department.

With the Lottery allowing the Casino Club to remain open on an interim basis as a review of KLIM is completed, approximately 90 jobs and the state tax revenue the casino generates are preserved.

Sen. Justice, the coal mining tycoon who rescued The Greenbrier in 2009 with his own money, was instrumental in bringing casino gambling to the White Sulphur Springs property. Though a small gaming facility with only 160 slot machines, 30 table games, and sports betting, the casino was instrumental in stabilizing The Greenbrier, which was purchased out of bankruptcy by the Justice family.

The $500 million KLIM deal allows The Greenbrier to fend off a receivership attempt from Omni Hotels, which bought almost $300 million of the Justice family’s debt on the resort, and to make long-delayed renovations.

Political Rivals

Justice called the KLIM deal a “great day for The Greenbrier” while highlighting his family’s commitment to the resort.

“When our family stepped forward to save The Greenbrier in 2009, plenty of folks thought we had lost our minds. The resort was in bankruptcy, people had lost their jobs, and many believed the glory days of America’s Resort were over. But we knew what The Greenbrier meant to West Virginia, and we knew it was worth fighting for.

For nearly two decades, our family has put our own money, our hearts, and our lives into The Greenbrier and into West Virginia. We invested here, created jobs here, took risks here, and fought like crazy to keep this treasure alive when it would have been a whole lot easier to walk away. I’m incredibly proud of that record, and nobody can ever take it away.”

Jim Justice

Though both are Republicans, West Virginia Gov. Patrick Morrisey and Justice aren’t exactly close. The strained relationship stems from Morrisey blaming Justice for inheriting a significant budget deficit after succeeding him as governor.

Morrisey praised the KLIM deal, while taking a shot at the Justice family.

Morrisey also took credit for saving the casino.

“I have asked the Lottery Commission to take all necessary steps to prevent the loss of Greenbrier employees during this transition of ownership,” the governor said.