Greenbrier Warns Casino Club Could Close Amid Ongoing Resort Restructuring

The Greenbrier Casino Club faces potential closure as the historic West Virginia resort negotiates a refinancing deal with a New York private equity firm to stave off a hostile takeover bid from the owners of rival resort The Homestead.

The Justice family, which controls the historic Greenbrier in White Sulphur Springs, W.V., says the West Virginia Lottery is holding up a $500 million financing deal with Kennedy Lewis Investment Management (KLIM).

The Greenbrier needs the loan to quickly pay off debt held by Omni Hotels, which owns and operates The Homestead in nearby Hot Springs, Va.

In a court filing, the Justice family say the Lottery, which regulates casino gambling in West Virginia, hasn’t approved the KLIM loan, which, if executed, would result in a new parent entity of The Greenbrier. The financing deal would result in the formation of Greenbrier TopCo, with KLIM controlling 51%.

Since the Justices are seeking to sell a controlling stake in the resort, the West Virginia Lottery must conduct a suitability review of KLIM to be involved in a state-issued gaming license. The delay has led to the Justice family saying they’ll close the Casino Club to execute the KLIM deal.

Casino Club Closure

The Greenbrier is seeking to avoid going into receivership, which Omni Hotels, through its subsidiary, White Sulphur Springs Holdings, LLC, has asked West Virginia’s Southern District Court to initiate.

The Omni entity in March 2026 purchased a loan vehicle that The Greenbrier took out through Virginia-based Carter Bank.

On April 1, 2026, the $289.5 million loan matured, but Omni says it wasn’t paid. The Justice family argues that Carter Bank should not have been allowed to sell the debt to the owner of the resort’s primary competitor, calling it a “fraudulent conspiracy” in court filings.

The Justices hope to pay off the debt held by Omni with the KLIM loan and use the remaining funds on outstanding tax liens and property renovations.

The daily interest on the $289.5 million loan is said to be around $145,000.

The Casino Club is a boutique non-public casino that employs about 90 people. The casino has 160 slot machines, 30 table games, and a FanDuel Sportsbook.

Lottery Rejects Greenbrier Claims

In a sternly worded letter to Greenbrier attorney Steven Ruby, David Bradley, the acting director of the West Virginia Lottery, takes issue with the resort’s court claims.

Bradley says the Lottery has been upfront about needing to perform due diligence in reviewing the suitability of KLIM. Bradley put the blame on The Greenbrier for not providing the Lottery with adequate time to consider the new ownership structure.

“You did not provide the Lottery with necessary final draft documents regarding the transactions until Aug. 5, 2026. And you only wrote to me to request a special meeting that afternoon. The special meeting you requested be set for Aug. 7 would have violated the West Virginia Open Governmental Proceedings Act, which requires all public bodies, including the Lottery Commission, to post ‘notice of a special meeting’ on the Secretary of State’s website at least five business days prior to the date of the meeting,” Bradley wrote.

“To be clear, the Lottery must have time to complete its due diligence and must comply with the Open Governmental Meeting Act when it schedules its meeting. We will not be pressured to ignore this law by anyone regardless of status,” Bradley concluded.