Red Rock Eyes Nov. 20 Debut for Durango Casino

Posted on: August 4, 2023, 02:45h. 

Last updated on: August 4, 2023, 02:45h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Red Rock Resorts (NASDAQ: RRR) said it’s targeting Nov. 20 as the grand opening date of the Durango Casino & Resort in Southwest Las Vegas.

Durango
Construction on Red Rock Resorts’ Durango Casino & Resort in Southwest Las Vegas. The venue is expected to open on Nov. 20. (Image: KLAS)

The operator recently tested external lighting and signage at the venue, stoking speculation that the timeline to opening was running more rapidly than expected. Red Rock believes Durango Casino & Resort will be successful because it’s in one of the few areas of Las Vegas that isn’t densely populated with gaming venues. Durango’s marquee lighting will be unveiled tonight.

The state-of-the-art resort will feature over 200 hotel rooms, convention and meeting spaces, a resort pool with cabanas, outdoor social areas, and free parking,” according to a statement. “Durango will offer locals and visitors a best-in-class resort boasting 15 restaurants, including four signature outlets and a food hall set in a dynamic casino environment.”

The casino will feature 73,000 square feet of gaming space, a sportsbook, 2,000 gaming machines, and 40 table games.

Durango Quickly Springing to Life

Red Rock commenced construction on the $750 million Durango project last year and it was topped off last October.

The venue is an addition to the operator’s exclusively Las Vegas portfolio and it could be an accretive one due to the dearth of casinos in Southwest Las Vegas and that area’s rapidly growing population. Some analysts believe the new integrated resort will provide a long-term spark to Red Rock stock.

“Durango opening (November 2023) should be a catalyst, and we believe shares can work as we approach that date,” wrote Stifel analyst Steven Wieczynski in a note to clients.

He rates the stock “hold” with a price target of $51, down from $54. The shares are up 12.42% year-to-date.

In addition to its namesake venue in Summerlin and the Green Valley Ranch in Henderson, Red Rock operates multiple gaming properties under the Station brand throughout the Las Vegas area. The company also runs 10 Wildfire casinos, including seven in Henderson, according to its website.

Durango Adds to Red Rock Locals Offerings

Durango will feature a large hotel and given its proximity to the Strip, it could be positioned to capture business and leisure visitation among travelers that want to avoid the Strip or are seeking better pricing during Sin City’s busy periods.

Still, as is the case with many Red Rock venues, Durango’s target demographic will be Las Vegas locals — a demographic analysts view as growing and increasingly financially healthy.

An influx of affluent retirees from other states, namely neighboring California, bolsters the long-term case for Red Rock shares, because many of those consumers have the capability to pay cash for Las Vegas real estate. Combine the elimination of mortgage obligations with lower property taxes and no state income tax in Nevada, and they have the discretionary cash with which to indulge in visits to Red Rock-operated casinos.