It’s unclear how this will impact Red Rock Resorts, which has just one Izakaya in a market dominated by Golden Entertainment. Red Rock, which plans to open seven Izakayas by January 2026, is also focusing on expanding its casino footprint (Inspirada, etc.).
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State gaming regulators last week gave tentative approval to Red Rock Resorts’ plans to open two taverns in North Las Vegas, the first of seven the company plans to eventually operate in the Las Vegas Valley.
Senior Vice President of Operations Christopher Fiumara told the Gaming Control Board that the first tavern is scheduled to open by the end of September and the second by January. All seven taverns could be completed by January 2026.
The slow rollout may be one reason why executives at Golden Entertainment, the state’s largest tavern operator, ignored Red Rock on a conference call the next day to report second-quarter earnings.
Golden CEO Blake Sartini is the brother-in-law of Red Rock Chief Executive Frank Fertitta III and Vice Chairman Lorenzo Fertitta. The two companies have long kept their operations separate.
But the announcement in May that Red Rock, which operates seven casino resorts in Las Vegas, would enter a business long dominated by Golden, foreshadowed the family feud.
There now appears to be a family truce.
“The company believes this new Izakaya brand and division is a natural evolution of the company’s business model of serving local residents,” Red Rock attorney Mark Rubinstein told the trustees.
Red Rock is naming its saloon venture “Seventysix by Station Casino,” after the year the company was founded. The first location will be at the corner of Centennial Parkway and North Lamb Boulevard, while the second will be on Aliante Parkway.
In Nevada, a tavern is a combination bar and restaurant establishment that also has gambling. It has been classified by the Board of Control as a restricted area that allows a maximum of 15 slot machines above the bar.
But it can also be an unpredictable business.
“The beginning of summer is always a tough time for local businesses in general,” Sartini said of the tavern’s seasonality. “Football is a big [revenue] We had the driver take us to the izakaya.”
In the second quarter, revenue from Golden’s 71 taverns increased 3% to $28.1 million, mainly due to the company’s purchase of six additional taverns over the past year. Golden’s eight casinos, which include the STRAT Hotel Casino & Tower and two Arizona Charlie’s properties, accounted for 88% of the company’s quarterly revenue, about $148 million.
Golden Co. President Charles Protell noted the tavern’s food and beverage revenues were down 10 percent in the quarter and attributed that to the NHL’s Vegas Golden Knights’ playoff exit in May. A year ago, the Knights played into June and went on to win the Stanley Cup.
Red Rock Casino Resort has more than 3,000 rooms, 15,300 slot machines and 317 table games. The company reported second-quarter net revenue of $483.2 million, up 17 percent.
In addition to establishing a tavern division, Red Rock has announced expansion plans for the Durango Casino Resort, which has been open for about nine months, and is considering building a similarly sized facility in the Inspirada community in Henderson.
People walk through Mohegan Casino Las Vegas inside Virgin Hotels Las Vegas on Jan. 29, 2023. (Daniel Clark/Nevada Independent)
Mohegan Gaming reports 8% decline in second-quarter revenue in Las Vegas
Mohegan Gaming & Entertainment is winding down its casino operations at the Virgin Hotels Las Vegas in its final months.
The roughly 8 percent decline in second-quarter revenue reflects the timeline the company is moving out of the facility.
Mohegan Las Vegas, the operating division of the Mohegan Indian Tribe of Connecticut, contributed just under $6.3 million to the tribe’s total net revenue of $504.2 million in the second quarter, an increase of more than 21 percent from a year ago.
“Looking at our company as a whole, we are confident that our strategy is taking shape and are excited about our near- and long-term prospects,” Mohegan CEO Ray Pineau said in a statement accompanying the earnings release, without mentioning Las Vegas.
Virgin Hotels president Cliff Atkinson said in May that hotel management would take over running the 60,000-square-foot casino, whose sportsbook is run by Betfred Sports.
Resort officials declined to comment on Mohegan’s second-quarter results.
In April, Mohegan Las Vegas general manager Joe Hasson was promoted to interim chief operating officer of Mohegan Gaming, overseeing the tribe’s eight casinos in the U.S., Canada and South Korea. He officially assumed the role last week.
The Mohegans partnered with JC Hospitality to complete an 18-month, $200 million renovation of the 1,500-room Virgin Hotel (formerly the Hard Rock Las Vegas), becoming the first tribal gaming entity to operate a casino in Las Vegas.
Other tribes have since expanded into Las Vegas: In 2022, the gaming arm of the San Manuel Indian Tribe in Southern California bought the Palms Casino Resort for $650 million, while Hard Rock Entertainment, owned by the Seminole Indian Tribe in Florida, bought The Mirage for $1.1 billion and is turning it into Hard Rock Las Vegas.
Nugget Casino Resort in Sparks, March 9, 2023. (Tim Leonard/Nevada Independent)
Sparks Nugget operator says quarterly results were “disappointing”
Century Casinos officials said renovations to the gaming floor at the Nugget Casino and Resort in Sparks caused second-quarter revenue to fall 23 percent.
Century recently announced that it is adding 120 new slot machines and a high-limit room to the casino, repainting the building’s exterior and improving its indoor and outdoor signage.
The 1,382-room Nugget was purchased by the Colorado Springs-based casino operator last year for $195 million and became Century’s flagship property.
“While slot and table reservations were significantly lower compared to last year, that only explains a small portion of the decline,” Century co-CEO Peter Hotzinger said on a conference call last week. “The market had a disappointing quarter. There’s no way around it.”
Co-CEO Irwin Heitzman added that Century is learning about Northern Nevada’s “highly competitive market,” which includes “very experienced operators.” Northern Nevada casinos face new competition from California’s tribal casino community, which has seen three new casino properties open in the Sacramento area in the past two years.
In addition to Sparks, Century also operates casinos in Colorado, Missouri, West Virginia, Maryland and Canada. For the quarter ended June 30, the company’s total operating revenue was $146.4 million, of which the Nugget contributed $20.8 million.
What I’m Reading
🎲 Tribal representatives praise Harris-Waltz for her experience with Native American gambling issues — Matthew Credel, PlayUSA
Vice President Kamala Harris and Gov. Tim Walz have experience working with tribes in California and Minnesota, respectively.
🎰 Nassau County Councillors Approve Las Vegas Sands Casino Lease — Eyewitness News, ABC7
There are still hurdles to clear, such as a New York State gambling license.
🏀 ‘That’s the goal’: Mark Cuban reaffirms Mavs’ commitment to staying in Dallas — Holden Wilen, Dallas Business Journal
Cuban denied rumors that the Mavericks might move to Las Vegas because of the Adelson family’s ownership and the NBA’s interest in expanding into the market. “We’re not going anywhere.”
The Canteen Food Hall at the Rio Hotel and Casino in Las Vegas on March 11, 2024. (Daniel Clark/Nevada Independent)
News, Notes, Quotes
Rio Las Vegas lays off undisclosed number of employees
The Rio Las Vegas, off the Strip, is in the midst of a $350 million, 18-month renovation and last week laid off an undisclosed number of employees. Dreamscape, the Rio’s owner, said in a statement that the Rio’s workforce has grown since taking over operations from Caesars Entertainment late last year. “We now have a better understanding of the staffing levels Rio requires to deliver guest service and operational efficiencies,” the company said in a statement.
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AGS Shareholders Approve $1.1 Billion Private Equity Sale
Shareholders of Las Vegas-based slot machine developer PlayAGS have approved the company’s $1.1 billion acquisition by Brightstar Capital Partners. More than 87% of votes were in favor of the acquisition. The transaction is expected to close in the second half of 2025 and will make AGS a privately held company. AGS shareholders will receive $12.50 per share in cash, 40% above the stock’s closing price on May 8, the day before the sale was announced.
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LVCVA completes $600 million renovation of Central Hall
The Las Vegas Convention and Visitors Authority on Tuesday saw the final steel beams being loaded into the Central Hall for a $600 million renovation that will begin in 2023. When completed, the Central Hall will have a similar design to the $1 billion West Hall, which opened in 2021. The expansion and renovation of the South Hall was completed in January. Renovations to the Central Hall and North Hall are scheduled to continue through 2025.
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IGT to provide sports betting system to Reno-based Monarch Casino
International Gaming Technology (IGT) will provide sports betting technology to Atlantis Casino & Resort in Reno and Monarch Casino & Resort in Black Hawk, Colo. Reno-based Monarch Casino operates the two properties. The IGT platform will run the retail sportsbook and mobile sports betting, replacing the current operating system.
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