This morning saw (heard?) us do a guest stint on KNPR-FM‘s State of Nevada. We expounded on various and sundry topics, mostly Global Gaming Expo and the sorry condition of what passes for casino regulation in Nevada. Smoking in casinos—and why it persists—was dwelt upon, as was the failsino that Bally’s Corp. is fancifully planning for the Tropicana Las Vegas site. After his laughable project design was met with much Sin City derision, Bally’s Chairman Soo Kim was quick to walk it back, via his reliable PR organ, the Las Vegas Review-Journal.
In a rare moment of being at a loss for words, we blanked on our closing point re Bally’s Las Vegas (or whatever it will be called). Namely, that there will be soft opening “concurrent” with the launch of the Sacramento Athletics‘ 2028 season in Las Vegas. That gives Bally’s 3.5 years to plan, finance and construct a $3 billion-plus megaresort. Considering that the company, as KNPR’s Joe Schoenman pointed out, is lumbering under $5 billion in debt and can’t borrow a plug nickel more, that’s a pretty catchy fantasy Kim has. Even MGM Resorts International would be hard-pressed to achieve such a quick turnaround. It’s taking MGM six years-plus to build an ultra-resort in Japan, after all.
The question then becomes one of whether site owner Gaming & Leisure Properties Inc. has an infinite capacity for underwriting Kim’s pipe dreams. If CEO Peter Carlino can swing the financing for this (and Bally’s Ozarks and …), what does he need Kim for? GLPI could find a number of other, far more experienced megaresort operators to undertake this project. Perhaps tomorrow morning’s earnings call will give some clue as to GLPI’s intentions. However, sticking with Kim seems like a surefire recipe for disaster.
There will never be a Ballys or Athletics anything on that corner. Somebody with both success and funding will put something there. Most likely the next resort. The Athletics could not fill a stadium even if it was game 7 of the World Series.