Can you provide any information on the following casino rumors? Rumor that Boyd Gaming is purchasing the two Fiestas from Stations. Rumor that the purchaser/owner of the Railroad Pass Hotel & Casino is purchasing the Eldorado Casino. Other rumor is Dotty's is purchasing Texas Station, any truth to that? Anything in the works for the Eastside Cannery?
[Editor's Note: Since the answers to these rumor questions are necessarily speculative, we're identifying the speculator in this QoD as David McKee, longtime Las Vegas business writer and author or our blog Stiffs & Georges.]
Casino companies do not comment on rumors, so you will have to rely on some informed speculation.
Although Boyd Gaming has presences in Henderson (Eldorado, for one) and North Las Vegas (Cannery), a play for the two Fiestas is unlikely, as it would put Boyd into geographical areas — i.e., near Sunset Station and in the northwest valley — where its reach is minimal. Also, Wall Street analysts seem to believe that Station may use sales of its real estate to escalate its financial recovery, although it is already doing better than expected.
Boyd to sell Eldorado? Possibly. It’s a bottom-feeder in the Boyd portfolio and the company has no plans to reopen it until June 2021. I'd rate this as "plausible."
Dotty’s buying Texas Station would be quite a reversal. For years, Station has been trying to alternately stamp out and buy out Dotty’s. One complication is that Station CEO Frank Fertitta III’s mother owns the land under Texas Station. Fertitta could sell the physical assets of the casino and lease the land to the new operator. Will it be Dotty’s? Stranger things have happened … but this one rates as "implausible."
Finally, Boyd hasn't announced any plans for Eastside Cannery. This would be a credible candidate for an asset sale, as it has proven to be redundant with next-door neighbor Sam’s Town. Having to sell it would be a bit of backtracking for Boyd, which bought Eastside Cannery with some fanfare, but it makes sense in terms of trimming the ship for the choppy waters we’re currently traversing.
