Here’s Why Station Casinos is Selling Property in Reno

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.Reno Sign

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!

Penn National Gaming Completes Sale of the Las Vegas Tropicana

Despite Carolyn Goodman’s best efforts, Las Vegas remains shut down. Interestingly, property sales are still taking place in this city. News is now coming out the Penn National Gaming has officially completed the sale of the Las Vegas Tropicana.

Tropicana Las Vegas

It’s big news for the Pennsylvania-based gaming company. Today, we’re going to look at the details of this major casino sale. We’ll also check out some of the other venues in Las Vegas that are scheduled to open soon.

Let’s get into it!

Las Vegas Casino Officials Call for Restrictions to be Lifted

Things are still very tough in Las Vegas. Back in March, Governor Steve Sisolak began ordering all non-essential businesses in the state to close their doors. This includes casinos. As a result of these regulations, Las Vegas is at a standstill.

None of the casinos in this city are able to operate right now. Many of them are losing millions of dollars every single day. The closing of these casinos has also caused the tourism industry in Las Vegas to completely shut down.

It was unclear how much of an issue this would become. Some analysts predicted these regulations would only be in place for a few weeks. It’s been more than a month since casinos in the state were closed down, however, and Governor Sisolak seems unwilling to make any changes.

Some major casino officials are now voicing their opinions. Last week, Wynn Resorts CEO Matt Maddox gave some ideas for how casinos in Las Vegas can reopen. This includes implementing social distancing measures in casinos and requiring table dealers to wear masks.

No one really knows how long the regulations in Nevada will last. It’s clear that many companies are suffering, yet state officials are trying to avoid a major loss of life. Even with the regulations set in place, some companies are still managing to acquire new properties in Las Vegas.

Penn National Gaming Has Sold Las Vegas Tropicana

Penn National Gaming purchased the Las Vegas Tropicana Hotel & Casino back in 2015. As the coronavirus began affecting Las Vegas, company officials began discussing plans to sell this venue. In late March, Penn Gaming announced it had reached a new agreement with Gaming & Leisure Properties, the landlord of this property.

Under the agreement, Penn National Gaming will sell this venue for $337.5 million worth of rent credits. The company is looking for ways to cut down on costs while the current regulations are in place.

This week, this property sale was finalized. Gaming & Leisure Properties now owns the land this historic hotel-casino sits on. Penn National Gaming CEO Jay Snowden commented on the company’s plans to the media this week.

“We believe that these collective steps will allow us to successfully weather the state-mandated closures related to the COVID-19 crisis,” Snowden said.

It’s not much of a surprise. Penn National Gaming is looking for ways to save money after investing hundreds of millions into Barstool Sports. Hopefully, this new strategy is able to help the company through this crisis.

Construction Continues on Las Vegas Casino-Resorts

It’s been more than a month since all of the casinos in Nevada were forced to close down. As we’ve already mentioned, this is costing many companies millions of dollars. Unless things change quickly, some of the casinos in this state may be forced to permanently close their doors.

To the surprise of many, construction has been allowed to continue on several major casino-resorts. This includes work on Resorts World Las Vegas. This is the most expensive casino-resort ever built and many expect it to be the most impressive venue ever built in Las Vegas.

Some of these construction projects are facing difficulties, though. A recent report claims that a builder at Circa Las Vegas recently tested positive for the new coronavirus. As a result, owners of this venue are setting new guidelines for construction workers.

It’s unclear if any new work will be done on the Las Vegas Tropicana. Most feel it’s unlikely under the current regulatory situation.

Some experts claim that more major property sales are likely to take place over the next few months.

Are you surprised to see Penn National Gaming sell the Las Vegas Tropicana? Let us know in the comments section below.

Three More States Approve Eldorado Resorts’ New Merger

Back in June, officials within Eldorado Resorts announced that the company had agreed to formally merge with Caesars Entertainment. It’s the largest merger between casino companies in history. This week, three more states officially approved Eldorado Resorts’ new merger.Eldorado Resorts Logo

The process to combine these two companies was expected to take a long time. A huge number of states need to give permission for the two operators to join forces. Today, we’re going to look at what still needs to happen for these companies to merge.

Let’s get started!

Why Did Eldorado Resorts Purchase Caesars Entertainment?

Eldorado Resorts is one of the biggest and most successful casino companies in the world right now. It was founded in 1973 in Reno, Nevada. Over the years, it’s expanded across the country. Eldorado Resorts now operates 23 properties across 11 different states.

Since 2013, this company has worked hard to acquire new properties. First, it agreed to merge with MTR Gaming Group. In 2015, the company purchased Circus Circus Reno and a 50% stake in Silver Legacy from MGM Resorts International for $73 million.

In 2017, Eldorado acquired the Isle of Capri Casinos for an astounding $1.7 billion. Over the next few years, this Reno-based casino operator continued to purchase properties. By March of 2019, rumors began to surface that Eldorado was going to purchase Caesars Entertainment.

The timing of this deal made sense. Caesars Entertainment had fallen into debt and was looking for a way to turn things around. By June, Eldorado revealed that it was purchasing the fellow Nevada-based company for an astounding $17 billion. The goal of this deal is to help Eldorado expand its presence across the country.

A deal of this magnitude can’t be completed in a day, though. A huge number of state gambling commissions need to ensure that this will not create a monopoly-like situation. Fortunately, this process of approval is moving along smoothly.

Three States Approve Eldorado Resorts’ New Merger

Ever since June, Eldorado Resorts has been seeking approval from various state gambling commissions. It’s already received approval from many major states yet there’s still a long way to go before this merger is finalized. This week, three additional states announced they have approved Eldorado Resorts’ new merger.

The commissions in Louisiana, Pennsylvania, and Illinois all gave this deal the green light. The Louisiana approval is particularly exciting, as the company will soon operate several new gambling venues in the state. There are still some important states that are holding out, though.

Approval in New Jersey will be extremely important. Officials within Atlantic City have raised concerns over the impact that this deal will have on other casinos in the city. With that being said, it seems unlikely that this state’s gambling commission will choose not to approve the new merger.

Nevada is another important state that has yet to formally approve this deal. Based on the way things are moving, the merger between Eldorado Resorts and Caesars Entertainment will be completed by mid-2020. The Federal Trade Commission still needs to agree to it, as well.

Eldorado Resorts’ new merger will create the single largest casino company in the United States. It will be extremely interesting to watch this deal progress over the next couple of months.

Major Las Vegas Property Sales Continue

There have certainly been some major changes to the US casino industry lately. Of course, not every company is looking to merge with others. Several huge casino operators have instead looked at property sales as a way to generate additional revenue.

This is especially true with MGM Resorts International. The Las Vegas-based company has recently sold several of its biggest and most profitable casino-resorts in Las Vegas. The first came back in October when MGM sold both The Bellagio and Circus Circus. The sale of The Bellagio earned the company more than $4 billion, making it the biggest in Las Vegas history.

A few months later, MGM Resorts announced that it was selling the Mandalay Bay Hotel-Casino.

Not all of these sales aren’t exactly what they appear, though. MGM has chosen to lease back several properties and retains control of its operations. It’s currently paying $245 million per year to keep operating The Bellagio.

Depending on how successful Eldorado Resorts’ new merger with Caesars Entertainment is, more companies may choose to take a similar approach. For now, several casino companies are simply choosing to part with their venues as a way to earn more revenue.

There is a lot happening in the US casino industry. Stay tuned for more updates over the next few months!