Red Rock to Raze Trio of Closed Station Casinos, Sell Real Estate

Posted on: July 15, 2022, 04:55h. 

Last updated on: July 15, 2022, 06:07h.

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

Red Rock Resorts (NASDAQ:RRR) announced today its trio of still-shuttered casinos — Fiesta Henderson, Fiesta Rancho, and Texas Station — will be closed for good, torn down, and the land sold.

Station Casinos
Station Casinos’ Texas Station in North Las Vegas. Along with two other properties, it’s being permanently closed. (Image: Jeff Scheid/Nevada Independent)

The venues were closed in 2020 soon after the onset of the coronavirus pandemic. But as casinos across the Las Vegas Valley reopened, Red Rock kept the aforementioned properties and the Palms closed, stoking speculation about the casinos’ futures.

Station Casinos parent Red Rock ultimately sold the Palms. Last month, it was revealed that the North Las Vegas City Council signed off on extending the “non-operational” status of Texas Station and Fiesta Rancho through June 4, 2023.

Combined, the three casinos sit on 107.5 acres, meaning Red Rock is adding to its vast holdings of currently unused land throughout the Las Vegas Valley. Local media reports don’t mention potential buyers for the properties. But it appears unlikely new gaming venues will replace them.

For Red Rock, Practical to Close the Casinos

While Fiesta Henderson, Fiesta Rancho and Texas Station were popular among visitors, and locals wanted the casinos to reopen, it’s a sensible economic move for Red Rock to permanently shutter the establishments.

There were costs associated with the in-limbo status of the venues, and over the past two years, patrons switched over to other Station casinos. For example, Henderson residents that previously frequented Fiesta Henderson now visit Green Valley Ranch and Sunset, indicating they’re remaining loyal to Red Rock properties.

In addition to its namesake venue in Summerlin and 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.

Prior to the pandemic, Fiesta Henderson, Fiesta Rancho, and Texas Station employed approximately 1,750 people. A third moved on to other Station venues, and the rest left for other industries or departed the area, reports The Las Vegas Review-Journal.

Red Rock Planning New Las Vegas Casinos

While Fiesta Henderson, Fiesta Rancho, and Texas Station are closing for good, Red Rock remains one of the dominant operators in the Las Vegas locals market, and is adding more venues to bolster that status.

The operator is reportedly in talks with the city of North Las Vegas for a new gaming venue that could be located several miles from some properties operated by rival Boyd Gaming.

Red Rock is also under construction on a Wildfire casino in downtown Las Vegas, and broke ground on the Durango project in Southwest Las Vegas earlier this year.