Four Las Vegas casinos may remain closed for good, according to a report from the Las Vegas Sun.
In Tuesday’s earnings report, Frank Fertitta III, CEO and chairman of Red Rock Resorts, the parent company of Station Casinos, said that Palms, Texas Station, Fiesta Rancho and Fiesta Henderson will remain closed for the foreseeable future.
“We don’t know if or when we will reopen any of the properties that were closed,” Fertitta said in the call. “We think it’s too early to make that decision.”
Station Casinos opened 16 of its 20 properties in Las Vegas when gambling operator Governor Steve Sisolak was to resume business on June 4. Before the official reopening was announced, Station officials said that the four properties would not reopen when they first qualify and that the company would take a phased reopening approach with its properties visit dewa poker.
The stated approach is similar to the way Caesars Entertainment and MGM Resorts handled its Vegas reopening, as the two companies only opened a few properties on the Las Vegas Strip while measuring demand in the post-COVID-19 market.
But Station Casinos has not reopened the four properties, even after some positive economic news. While net income fell 76 percent from Q2 2019, EBITDA (Income Before Interest, Tax and Amortization) for the 16 casinos opened by the company actually jumped 47 percent year-on-year for the second quarter.
Fertitta said the figures were due to the fact that gambling income was their main source of income. Many properties cater to locals, as opposed to tourists arriving from out of town.
The company does not own any property on the Las Vegas Strip, and Palms is one of their two off-strip casinos. Palace Station is another.
“We are primarily a gaming company that happens to have hotel, catering and convention businesses as facilities,” said Fertitta. “Basically, 80% of our business comes from the casino, so we can get the results we get in the short term without strong hotels, caterers and conventions. Hopefully that will return as we tackle the COVID -19 crisis, but our main business is a Las Vegas suburban local business.