The future of the casino at West Virginia’s historic Greenbrier resort is uncertain as its owners are seeking to obtain a $500 million refinancing deal that would help them prevent a possible takeover and receivership.
The Justice family, which controls The Greenbrier in White Sulphur Springs, West Virginia, US, says the deal with New York-based private equity firm Kennedy Lewis Investment Management (KLIM) is being delayed by the West Virginia Lottery.
The latter must review the proposed ownership structure as it involves a licensed casino.
The dispute has escalated to the point where the Greenbrier says it intends to close its Casino Club on Friday, August 14, allowing the resort to proceed with the refinancing transaction.
Closure Could Help Secure Refinancing
The proposed agreement would allow a new parent company called Greenbrier TopCo to be established. KLIM would hold a 51% controlling stake.
Since the transaction would change control of the casino operation, the West Virginia Lottery must first establish whether KLIM is fit to hold an interest in a state-licensed gaming operation.
The Justice family says it needs the refinancing to repay approximately $289.5 million in debt now held by Omni Hotels, the owner and operator of The Homestead resort in nearby Hot Springs, Virginia.
According to court filings, the loan matured on April 1, 2026, without being repaid. The Greenbrier has been fighting an effort by an Omni-controlled entity to place the resort into receivership.
The resort says the KLIM financing would allow it to repay the debt, address outstanding tax liabilities and fund renovations.
The financial pressure is significant, with the daily interest on the $289.5 million loan at roughly $145,000.
No Other Solutions
The Greenbrier Casino Club is a relatively small casino operation that is not open to the general public in the same way as a typical commercial casino. It employs approximately 90 people and features 160 slot machines, 30 table games, and a FanDuel Sportsbook.
The Justice family argues that closing the casino is necessary to complete the KLIM transaction and prevent the financial situation from deteriorating further.
In a court filing, the family said there were no other practical options to complete the transaction without incurring additional costs due to delays.
They Handed the Papers Late
The West Virginia Lottery has rejected the suggestion that it is responsible for holding up the refinancing.
In a strongly worded letter to Greenbrier attorney Steven Ruby, acting Lottery director David Bradley said the regulator needs adequate time to conduct its suitability review.
Bradley said the Greenbrier did not provide the Lottery with the necessary final transaction documents until August 5, despite seeking a special meeting just two days later.
He also pointed to state requirements governing public meetings, saying the requested August 7 meeting could not have been held legally because the required notice period had not been met.
The Lottery maintains that it must complete its due diligence and comply with West Virginia’s Open Governmental Proceedings Act before considering the proposed ownership change.