The $72.5 million acquisition of MGM Resorts International‘s holdings in Reno by Eldorado Resort’s is included in the three casino industry buyouts approved by the Nevada Gaming Commission on Thursday.
The purchase of Circus Circus Reno and the remaining half of the Silver Legacy from MGM Resorts International by Eldorado Resorts was unanimously signed by the commissioners who met Thursday in Las Vegas. The move by Eldorado Resorts was lauded as an ideal transaction for the invigorated Northern Nevada casino market. The deal, which was announced in July, was unanimously approved by the Gaming Control Board on November 5.
Also approved by regulators was the acquisition of the remaining 35 percent of the Golden Gate from President and owner Mark Brandenburg, whose family founded the casino on 1 Freemont Street back in 1906. The downtown Las Vegas original was acquired by Derek Stevens the majority owner of the casino. In addition, the acquisition of the 10 percent stake held by Sam Nazarian in the SLS Las Vegas by the casino’s owner Stockbridge Capital Partners was approved. Nazarian’s stake was held through his Los Angeles-based SBE Entertainment.
Currently, Eldorado operates six properties in five states, three of which are in downtown Reno including the Circus Circus, Eldorado and Silver Legacy. Within the three resorts, 4,100 hotel rooms and between 15 and 20 restaurants will be operated by Eldorado, giving it almost 32 percent control of the hotel rooms in the market. All three casinos are connected by enclosed skywalks. According to Tom Reed, Eldorado Resorts President, the properties will be operated as a single entity.
The company that bought out MTR Gaming Group last year wants to take advantage of the current economic boom taking place in Reno where through September gaming revenue is up 3.3 percent. Reed said, more than one-fourth of Eldorado’s yearly cash flow would be accounted for by its Reno resorts.