West Virginia Political Rivals Clash Publicly Following Lottery Commission Approval of $500 Million Greenbrier Ownership Shift

A public feud has broken out between Sen. Jim Justice (R-WV) and West Virginia Gov. Patrick Morrisey (R) after the state Lottery Commission signed off on new controlling ownership for The Greenbrier resort and its Casino Club.

On Wednesday (Aug. 26), the commission unanimously approved Kennedy Lewis Investment Management (KLIM) as the controlling owner. KLIM completed its 51% acquisition from the Justice family for $500 million, leaving the family with 49%. The move keeps the Casino Club operating after regulators deemed three KLIM designees suitable to hold the gaming license through Greenbrier Holdco, LLC. Two board seats stay with Justice family appointees, one occupied by Dr. Jill Justice.

Acting Lottery Director David Bradley said staff conducted extensive review of the transaction and its paperwork. Bradley stated that KLIM brings stability and financial integrity to the crown jewel of the state.

Political Heavyweights Exchange Blows

Morrisey welcomed the ownership change. “I am hopeful that the new controlling owner will bring much needed financial stability to the iconic Greenbrier. While The Greenbrier remains under the Lottery Commission’s financial watch, our administration will continue its monitoring of the casino and remain vigilant in our ongoing efforts to protect West Virginia jobs,” Morrisey said.

Justice responded immediately. “Patrick seems awfully eager to take shots at people who actually take risks, build businesses, and create jobs in West Virginia. I’ve spent my life doing exactly that — signing the front of paychecks for thousands of West Virginians, not just collecting one. My family saved The Greenbrier, invested hundreds of millions of dollars in West Virginia, and helped put thousands of people to work. Now the resort has a strong new partner and a bright future. Patrick can keep playing politics. We’ll keep building,” Justice said.

By the next morning Justice’s post had exceeded 125,000 views and 235 likes while Morrisey’s drew under 5,000 views and 25 likes. Morrisey followed up by citing Justice’s financial mismanagement in losing the resort and urged cooperation on jobs and restoration.

$500 Million Deal Breakdown

The KLIM funds settle The Greenbrier’s obligations to Omni Hotels, which acquired a $289.5 million loan and moved for receivership after the April 1 maturity. The total payoff including interest exceeds $300 million. Remaining proceeds clear outstanding federal, state, and county taxes and cover repairs and maintenance.

The Justice family acquired the resort out of bankruptcy in 2009 using coal mining resources and turned it around. Critics have long alleged deferred maintenance and movement of resort funds to other Justice-controlled companies. As first reported by Casino.org the transaction ends the family’s majority control while preserving a minority stake.

Reporting: Casino.org News

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