Four Las Vegas Casinos May Stay ClosedIn An Earnings Call, Station Casinos' Parent Company's CEO Said That Palms, Texas Station, Fiesta Rancho And Fiesta Henderson May Not Reopen |
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Four Las Vegas casinos may stay closed for good, according to a report from the Las Vegas Sun.
In an earnings call Tuesday Frank Fertitta III, CEO and chairman of Red Rock Resorts, the parent company of Station Casinos, said that Palms, Texas Station, Fiesta Rancho and Fiesta Henderson will remain closed for the foreseeable future.
“We don’t know if or when we’re going to reopen any of the closed properties,” said Fertitta on the call. “We think it’s too early to make that decision.”
Station Casinos opened 16 of its 20 Las Vegas properties when Gov. Steve Sisolak gambling operators to resume business on June 4. Before the official reopening was announced, Station officials said that those four properties would not reopen when they were first eligible to and that the company would take a gradual reopening approach with its properties.
The stated approach was similar to how Caesars Entertainment and MGM Resorts handled its Vegas reopening, as both companies only opened a couple of properties on the Las Vegas Strip while gauging demand in a post-COVID-19 market.
But Station Casinos hasn’t reopened those four properties, even after some positive economic news. While net revenue was down 76 percent from the second quarter of 2019, EBITDA (Earnings Before Interest, Taxes and Amortization) for the 16 casinos opened by the company actually jumped 47 percent year-over-year for the second quarter.
Fertitta said that those numbers are thanks to the fact that gambling revenue is their main source of income. Many of the properties cater to locals, as opposed to tourists coming from out of town.
The company doesn’t have any properties on the Las Vegas Strip, and Palms is one of their two off-strip casinos. Palace Station is the other.
“We’re primarily a gaming company that happens to have hotel, catering and convention business as an amenity,” said Fertitta. “Primarily, 80% of our business comes from the casino, so we’re able to have the results that we had in the short-term without strong hotel, catering and convention. Hopefully those will return as we get the COVID-19 crisis under control, but our primary business is suburban Las Vegas local business.”
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