Station casinos have agreed to sell its palm casino in Las Vegas to San Manuel for $650 million. On Tuesday, May 4 2021, Red Rock Resorts, the parent company of station casinos and California-based Tribe, announced the sale agreement. In a press release, San Manuel said the transaction is expected to end before the end of the year.
The California-based Tribe, San Manuel’s Chairman Ken Ramirez, said that May 4 2021, was an important date to the Tribe. He said the day represents a step to a long term economic diversification strategy. Ken also said that the Tribe was thankful for the opportunity to join a community they had grown to appreciate.
More About Palms Casino
Palms casino is a facility located west of the strip on the flamingo road. The casino has been closed since all gaming facilities in Nevada were shut down in March, prompted by the COVID-19 pandemic. After the reopening of casinos in Nevada in June 2020, Station Casinos did not open palms, plus the other three properties in the area.
The CEO of Red Rocks Resorts, Frank Fertitta, later denied that the Palms was up for sale in May 2020. The facility comprises the palms place condominiums, 2500-seat theatre, and 700 suites. Since its launch 20 years ago, the casino has had financial troubles leading to the transfer of ownership from the Maloof family to Station Casinos in 2016.
After reopening the 690 million renovated property, it still faced inconsistency despite hosting prominent artists such as Cardi B. This led to the closure of the casino’s night and day clubs.
The criticism from financial experts did not help the casino, as its share values continued going down at the Nasdaq. Red Rock Resorts spokesman Michael Britt at the time said the casino gaming and non-gaming parts of the business were growing. Yet, the business’s expenses continued to challenge the parent company following the fixed cost structure given to KAOS.
Four months after this closure, the facility was closed alongside others gaming platforms in Nevada due to the spread of Coronavirus.
About The Tribe
The Tribe is a brand that owns and operates San Manuel Casino. The facility is located in Highland, California, east of San Bernardino. The casino has changed the gaming market on the West Coast by providing high-end High Limit Slots and Tables gaming rooms.
The Decision to Sell
From an earnings call on May 4, 2021, Red Rock Resorts executive said that the company’s decision to sell did not come before the Coronavirus pandemic. But after the closure of casinos in March, the Palms had enough time to reassess their situation. San Manuel’s interest in the casino allows Red Rocks Resorts to let go of their facility, keeping their operations and balance sheet balanced.
San Manuel did not share exact details on how they intend to acquire the palms. But, the chairwoman of the Sam Manuel Gaming and Hospitality Authority confirmed that the Palms is well designed and has been beautifully redeveloped. She added that the company board believed that San Manuel’s loyal guests would enjoy this new platform.
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