The parent company of Resorts World Catskills is facing a difficult financial situation that may lead to major change.

According to a letter written by the company's largest shareholder, to a special committee of their board of directors, Empire Resorts has been losing money and may not be able to continue financially as a standalone public company.

"Empire Resorts, Inc. ... is at a critical juncture," the letter says. "Despite repeated cash infusions from lenders and equity holders, the company has operated with significant financial losses year after year, has been unable to become financially self-sustaining from revenues from its operations and does not appear to have any reasonable prospect for becoming financially self-sustaining in the future. The company’s recent announcement on June 20, 2019 that it has created a special committee to oversee the evaluation of strategic alternatives for the company as a whole, was likely in recognition of this reality."

Town of Thompson Supervisor William Rieber says it's public information the casino has been losing money and changes need to be made. Opened in February in 2018, the $1.2 billion resort includes a hotel, table games, and slot machines, but since then it's been running hundreds of millions of dollars in the red. 

"You know the big elephant in the room is the fact they have right around $500 million in double digit junk bond rated debt," Rieber said.

In the letter filed Thursday, KH Realty offered to buy all outstanding equity in the company, making it in essence, privately-owned. People in the town of Thompson, including the supervisor, remain hopeful.

"I think it's a stretch to think the casino will close. They have to re structure and I think that's patently obvious," Rieber said.

Empire Resorts says it has received the letter and its special committee will review it, as well as other strategic alternatives.