{"id":20502,"date":"2017-11-03T05:37:59","date_gmt":"2017-11-03T13:37:59","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=20502"},"modified":"2023-07-16T05:49:44","modified_gmt":"2023-07-16T13:49:44","slug":"renos-bright-future","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/renos-bright-future\/","title":{"rendered":"Reno’s bright future; All-time high for Vegas sports books"},"content":{"rendered":"

We love Reno<\/strong>. It has a river in the middle of downtown, nearby mountains and all the charm that Las Vegas<\/strong> so desperately lacks. It also had a gambling market that was written off for dead 15 years ago. Times have changed, however. Reno’s on an upward swing \"\"as a hub of manufacturing and economic development — the “Tesla effect” created by Tesla<\/strong>, Switch<\/strong>, Apple<\/strong>, Google<\/strong>, etc. — one that Union Gaming Research<\/strong> analyst John DeCree<\/strong> thinks could last one or even two decades. And if discretionary income is up in Reno, that’s a tide that’s going to lift all boats, including casinos — we’re already seeing it.\u00a0\u201cIn three to five years [if we are] still in a high-growth cycle and if things keep going as they are, 10 to 20 years is something that could be feasible. Let\u2019s hope the global and U.S. economy kind of steer the course, and I think Reno will keep leading away.\u201d DeCree told Nevada Newsmakers<\/em>.<\/p>\n

How so?\u00a0\u201cAs large companies come and create construction jobs, they bring population and migration to the city, which then requires housing development, then expansion of schools and other social services.\u201d Station Casinos<\/strong> hasn’t played the Reno card yet (why are they waiting?), but DeCree credits the Farahi<\/strong> and Carano<\/strong> families, owners of Monarch Casino & Resort Inc<\/strong>. and Eldorado Resorts<\/strong>, respectively, with being instrumental in the turnaround.<\/p>\n

Speaking of Eldorado, it recently put $40 million into renovations of its Reno room product. That was more than Wall Street<\/strong> was anticipating but the company promises 20% ROI from \"\"it. Eldorado is well-positioned for stability, having 19 properties in 10 states. It didn’t come out from Hurricanes Harvey<\/strong> and Irma<\/strong> unscathed but neither was the economic damage particularly severe and was offset by cost savings in corporate expenses.<\/p>\n

Exposure in the Reno market is now seen as a positive by stock boffins and Deutsche Bank<\/strong> analyst Carlo Santarelli<\/strong> observes that ERI “has now fully realized the $35m of targeted ISLE \"\"synergies, though management sees a path to 25% EBITDA margins within the next ~18 months on lower marketing and labor costs, both of which will occur gradually at the property level.” With free cash flow of $209 million envisioned for next year and $235 million in 2019, Eldorado is well-positioned to acquire additional properties, as it continues to be one of the most compelling growth stories in gaming.<\/p>\n

* Scarcely was the ink dry on Gov. Tom Wolf<\/strong>‘s legalization of satellite casinos than Pennsylvania<\/strong> had its first bidder<\/a>. Lawrence County<\/strong> is moving its chips to the center of the table. Now it only needs to find an operator who wants to bunk with the county in a mini-casino.<\/p>\n

* September’s wagering handle at Nevada<\/strong> race and sports books hit a best-ever $558 million — propelled by football — and the house won $44 million, an 8% year\/year increase. With 50 straight months of positive returns<\/a>, sports books are one of the most reliable revenue generators for Silver State casinos.<\/p>\n

* Need a roulette table for your rec room? Paragon Gaming<\/strong> can help you out with that. It’s auctioning off the inventory<\/a> of Edgewater Casino<\/strong>, precursor to shiny, new Parq Vancouver<\/strong>. Can’t make it to Vancouver<\/strong>? No problem. You can bid here<\/a>.<\/p>\n

* Could it be mere coincidence that the Oklahoma<\/strong> Legislature is mulling an expansion of tribal gambling at the same time that higher teacher salaries are on the docket? Games of dice and roulette would permitted under a bill that received the assent of the House Rules Committee<\/strong>. The anticipated $8 million in \"\"extra revenue would go to education. A similar bill was introduced last May but didn’t fare well. Gaming-phobic legislators may choose to increase the gross production tax rate on older oil wells instead. Some GOP members want no tax hikes and are chiding Gov. Mary Fallin<\/strong> over such extravagances as — horrors! — $100,000 to outfit the Department of Education<\/strong> with color printers. They’d be thunderstruck if the state spent any money on those newfangled horseless carriages.<\/p>\n","protected":false},"excerpt":{"rendered":"

We love Reno. It has a river in the middle of downtown, nearby mountains and all the charm that Las Vegas so desperately lacks. It also had a gambling market that was written off for dead 15 years ago. Times … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":17113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[14,199,22,207,115,212,95,33,79,74,57,31,20,38],"tags":[],"_links":{"self":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/20502"}],"collection":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/comments?post=20502"}],"version-history":[{"count":4,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/20502\/revisions"}],"predecessor-version":[{"id":32758,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/posts\/20502\/revisions\/32758"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media\/17113"}],"wp:attachment":[{"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/media?parent=20502"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/categories?post=20502"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/wp-json\/wp\/v2\/tags?post=20502"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}