In what turned out to be a unique set of circumstances, the Nevada Gaming Commission (NGC) recently held a special meeting to fast-track the transfer of gaming licenses for five truck stops throughout the state back to their previous owner in order to avoid closures and layoffs after the locations were acquired by the London-based giant British Petroleum (BP).
BP announced back on February 16 that it was acquiring TravelCenters of America (TCA) in a sizable $1.3 billion deal, and that the deal was on a tight schedule to close by May 15. TCA owned and operated the stops and held the gaming license to do so in Nevada.
Due to the tight closing schedule, BP did not have enough time to go through the typical licensing process, and did not express a desire to do so. Thus, the licenses were set to be relinquished, which would have resulted in a large number of layoffs for properties that are primarily rurally located.
However, TCA got the idea to reach out to the Cashell family, which previously held ownership of the stops and the gaming licenses.
Robert Cashell, the late head of the family, served as mayor of Reno from 2003 to 2014 and as lieutenant governor of Nevada from 1983 to 1987. His son, Robert Cashell, Jr., has been a gaming executive for decades and sits on the board of Red Rock Resorts.
Cashell Jr. is also currently president of RPI, a holding company that is already licensed in Nevada. Its holdings include the Topaz Lodge near the Nevada-California border as well as four properties under its subsidiary Winners Hotel & Casino Inc. RPI will now assume ownership of TCA’s licenses and will enter into a lease agreement with BP.
According to attorney Dan Reaser, there are four unrestricted properties, located in Las Vegas, Sparks, Wells and Mill City. The smallest houses 52 machines and the biggest houses 164; the lone restricted property is in North Las Vegas and houses just 15 machines. Cashell Jr. had sold the five properties to TCA back in 2015.
As part of the deal, RPI will take back the 105 combined employees and their benefits. Without the accommodations, the properties would have closed and all would have been laid off, with little chance for rehire given the lengthy licensing process for a new operator.
In total, the process took a little over three weeks, which is warp speed for regulatory matters. The Nevada Gaming Control Board and Gaming Commission met on consecutive days to advance the vote.
Cashell Jr., whose family has been involved in Nevada gaming for over 50 years, was very emotional and appreciative to regulators for pitching in to help expedite the process. He and his late father hired many of the employees that still work at the properties today.
“I recognize that 105 employees isn’t a big deal on the Strip, but it’s a big deal in Wells, Nevada, and even a big deal in Las Vegas,” Cashell said during the hearing, per CDC Gaming Reports. “I don’t know if obligation is the right word, but I felt a strong motivation to see if I couldn’t undertake the Herculean effort to do this.”
Per CDC, more action was also taken around the state to help facilitate the transfer—commissioners in Wells City and Elko County have also voted in favor of the change.
