The Nevada Gaming Commission approved Eldorado Resorts proposed .5 million purchase of Circus Circus Reno from MGM Resorts International, along with MGM’s remaining interest in the Silver Legacy.
The Gaming Commission gave its unanimous approval for the proposed deal on November 5, after a 45-minute hearing on the matter.
The deal gives Eldorado ownership of three Reno casinos, Circus Circus Reno, Silver Legacy, and the Eldorado, and 32 percent of the hotel rooms in Reno. Eldorado plans to operate 4,100 hotel rooms and between 15 and 20 restaurants at the three Reno casinos
“We feel no one in Reno will be able to compete with us,” Eldorado CEO Gary Carano told the Las Vegas Review Journal. “These are exciting times in Reno that we haven’t seen in a long time.”
Carano said Tesla Motors choosing Reno to build a large manufacturing plant for its high-priced electric cars and other local developments have improved the economic outlook for the Reno area, which posted a 3.3 percent rise in gaming through September, a 4.3 percent rise in clot revenues, while Washoe County has reported a 1.3 percent rise in tourism.
For Eldorado, the move diversifies its revenue base and adds to the six properties it operates in five states.
Carano said the Scioto Downs Racino near Columbus, Ohio, should continue producing about 32 percent of Eldorado’s annual revenues. Eldorado plans to add a Hampton Inns hotel to the racino.
In Henderson, the Club Fortune Casino likely will belong to Nevada Gold, becoming the company’s first Nevada casino despite the name.
The Nevada Gaming Control Board gave its preliminary approval of the sale, which the Nevada Gaming Commission is scheduled to address on November 19.
If approved, Nevada Gold would pay $14.2 million in cash and provide 1.2 million shares to Club Fortune Casino owner Carl Giudici, who will remain involved in its operations, while also being a shareholder.
The 25,000-square-foot Club Fortune Casino has 500 slot machines, 12 table games, and a poker room. The property also has a restaurant, two bars, a lounge, snack bar, and a gift shop.
Nevada Gold currently operates nine casinos in the state of Washington and a slot machine route in Deadwood, South Dakota.
