Red Rock Could Make Use of Reno Land

Posted on: February 21, 2025, 05:56h. 

Last updated on: February 21, 2025, 05:56h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Red Rock could finally put long held Reno land to use
  • All of operator’s casinos are in Las Vegas

Red Rock Resorts (NASDAQ: RRR) could finally put to use land it owns in Reno, Nevada, but the operator’s focus remains on its home market of Las Vegas.

Elevation Entertainment
Downtown Reno, Nevada. Red Rock Resorts could finally make a decision on eight acres of land it owns in the city. (Image: Visit The USA)

On the company’s fourth-quarter earnings conference call on Feb. 12, Truist Securities analyst Barry Jonas pointed that the investor presentation included a mention of the eight acres in Reno Red Rock owns. President Scott Kreeger noted that the land bank has previously appeared in the operator’s investor decks and that there has been some internal discussion about the future of that property.

So we’ve gone back and forth. We’ve looked at developing that project. It is gaming entitled,” said Kreeger in response to a question from Jonas. “It is a great location in Reno.”

The Red Rock acreage is near Monarch Casino & Resorts’ (NASDAQ: MCRI) Atlantis Hotel & Casino and the Reno-Sparks Convention Center.

Red Rock Reno Expansion Could Be Long Way Off

Kreeger didn’t mention a timeline for developing the Reno land and if Red Rock decides to move forward with a project in that market, it could be over the long-term, not anytime soon.

For now, the operator is focusing on Las Vegas, including the $120 million expansion of Durango Casino & Resort in the Southwest area of the city. That projected is slated to be completed by January 2026. The company has also enhanced other properties, including Green Valley Ranch, and is looking to expand its Sin City gaming tavern portfolio.

“From a priority perspective, we like the development opportunities we have in Las Vegas,” added Kreeger on the conference call.

The Reno-Lake Tahoe market is home to a plethora of casinos. Well-known operators there include Bally’s, Caesars Entertainment, Golden Nugget, and Monarch, among others.

Other Reasons Reno Could Be on Red Rock Back Burner

There are other reasons why Reno expansion likely isn’t a near-term priority for Red Rock, not the least of which is the company has a history of selling land in that area. It did so in 2014 and again in 2021.

To a lesser extent, Red Rock’s management agreement for the North Fork Mono Casino & Resort in Madera, Calif. could be a factor in the operator’s plans for the Reno land. That tribal casino, which is scheduled to open in 2026, could be loose competition to Reno gaming venues although it is a 4.5 drive from the Nevada city.

It’s also possible Red Rock could sell the eight acres in Reno and if it does, the buyer would likely be a non-gaming entity.

“But we’re always open to developing that at the right time and the right place given the priorities or if we get an attractive offer for it that we would divest and sell,” said Kreeger on the call.