Station Casinos Keeping Palms, Three Other Vegas-Area Properties Closed Until June 2021

Posted on: June 30, 2020, 03:04h. 

Last updated on: July 1, 2020, 02:57h.

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

The Palms and three other gaming properties in the Sin City area operated by Station Casinos will remain closed until at least June 2021, according to documents filed with the Nevada Gaming Control Board (NGCB).

Palms, Three Other Station Casinos Closed Until June 2021
The Palms, seen here, and three other Station casinos could be closed until June 2021. (Image: Bloomberg)

Approximately 75 percent of casinos in the largest US gaming center are reopened, and data suggests local venues — Station’s bread and butter — are outperforming Strip properties. As of June 4, many Station casinos restarted. But the Fiesta Henderson, Fiesta Rancho, Palms and Texas Station are still closed and could remain that way another year, according to NGCB filings.

NGCB documents pertaining to the quartet of casinos say “temp closure through 06/30/2021” under a section titled “Status Dates.”

A request for comment by Casino.org to Red Rock Resorts (NASDAQ:RRR), the parent company of Station Casinos, was not returned prior to publication of this article.

Palms Rumors Could Resurface

The Palms isn’t the only integrated resort that’s yet to reopen. Others include Bally’s, Paris, The Cromwell, Planet Hollywood, and Rio. But the Station property isn’t a stranger to rumors. In early May, speculation swirled Red Rock may be interested in selling the venue. Several weeks later, CEO Frank Fertitta dispelled the notion, saying the operator isn’t interested in moving that property.

Red Rock paid $312.5 million to acquire the Palms from the Maloof family in 2016 and proceed to spend $690 million to enhance the property.

Even if the operator wants to part with the venue, gaming property prices are depressed in the wake of the coronavirus pandemic. That, coupled with the resort’s location off the strip, could make it difficult for Red Rock to fetch an attractive price.

The company’s filings with the NGCB don’t indicate whether or not the venues could potentially reopen prior to June 30, 2021. Station’s booking web site merely says the quartet remain shuttered without going into further detail.

There are indications that Palms will reopen at some point. For example, social media is abuzz about the possible debut of a Raku Toridokoro eatery in the resort. That’s a high-end Japanese restaurant that, among other delicacies, could feature raw chicken on its menu.

Non-Operational Status

Station requested non-operational status for the Fiesta Rancho and Texas, both of which are located in North Las Vegas.

“Due to the uncertain economic conditions in the State of Nevada, Texas Station Gambling Hall & Hotel will remain closed until further notice, and there is no known reopening date at this time,” said the operator in a separate filing.

The North Las Vegas City Council will hear that matter at its July 1 meeting and is expected to approve the request for non-operational status.

Overall, Station employs roughly 14,000 workers in the Las Vegas area. But the company warned in early May that “meaningful staffing level reductions” at its Silver State venues are coming.