Station Casinos is one of the largest casino operators in the state of Nevada. Unfortunately, the company has been struggling to generate revenue over the past six months. As a result, several properties are being sold around the state. Today, we’re going to look at why Station Casinos is selling property in Reno.
It’s been a hard year for casino operators around the world. Station Casinos is now focused on new strategies to generate revenue. That includes major property sales.
Let’s look at what land is being put up for sale right now.
Nevada’s Casino Revenue Begins to Hold Steady
The state of Nevada has always been known for having one of the largest and most successful casino industries in the world. A huge number of large and small casinos are located here. Las Vegas remains the state’s most popular gambling destination.
Under normal circumstances, casino revenue in this state is higher than anywhere else. 2020 has been an unusual year, though, and the land-based casino industry is being severely impacted. For months, casinos around the United States were completely shut down.
Governor Sisolak gave the green light for Nevada’s casinos to open in June. Casino companies hoped that revenue from this industry would immediately bounce back. That has not been the case, and earnings remain significantly lower than they were last year.
Things appear to be holding steady now. Nevada’s gambling industry generated $756.8 million in July. That’s a large improvement from June, yet far below what was earned in July of 2019. Most analysts predict revenue earnings to be slightly higher once again in August.
This drop in revenue is taking a serious toll on casino companies based in Nevada. Some have begun looking at new ways to bring in money. Unfortunately, that could result in major property sales around the state.
We’re now beginning to hear that Station Casinos plans to sell some of its land in Northern Nevada.
Station Casinos is Selling Property in Reno This Year
Over the past few years, we’ve seen a number of massive casino sales. Much of these came from Caesars Entertainment and Eldorado Resorts, two companies that have merged this year. In order for this deal to go through, various state gambling commissions forced these companies to sell several of their casinos.
Things are different now. Many casino companies are now being forced to sell their properties to make up for lost revenue. In some cases, keeping casinos operational is no longer feasible and actually costs money.
That seems to be the case for Station Casinos, one of Nevada’s biggest casino operators. More than a decade ago, this company announced plans to break into Reno’s casino market. It bought massive areas of land in the city and revealed plans to open several major casino-resorts here.
It’s now been confirmed that Station Casinos is selling its property in Reno. That includes the 89-acre piece of vacant land on Mount Rose Highway and the eight-acre property near the Reno-Sparks Convention Center. It’s clear that company officials no longer see the benefit in holding onto this land.
Many of Reno’s top officials are disappointed to see this land sold. They’d hoped that several new major gambling venues would open here. Unfortunately, that’s no longer possible under the current state of the county’s land-based casino industry.
We may even see several major Las Vegas property sales take place soon.
Expect More Las Vegas Casinos to Go Up For Sale
As we said earlier, Las Vegas has always been the world’s top casino destination. Some of the most expensive casino-resorts ever built are located here. Prior to 2020, more than 40 million tourists would flock to this city every year.
Even the biggest casinos here have seen their revenue drop immensely in 2020. That includes Wynn Resorts, Las Vegas Sands, and MGM Resorts International. Most gaming analysts predict this trend will continue throughout the rest of the year.
Many of the smaller casinos around Las Vegas remain closed. Some are owned by Station Casinos. Officials within this company have recently told the media that several of these properties are likely to permanently shut down.
There’s a chance that we could see major casino-resorts sold here over the next few months. Several top gaming officials claim this remains a real possibility. Some even fear that new casino-resorts such as Resorts World Las Vegas will be forced to delay their construction.
Station Casinos is selling property in Reno. The company also claims it’s likely to put some Las Vegas casinos for sale. We’ll need to wait and see if any other major casino-resorts are sold over the next few months.
Are you surprised to see Station Casinos move out of Reno? Do you think any major casinos will be sold in Las Vegas? Let us know in the comments section below!