Red Rock Resorts is eyeing the development of its land parcel located near the Atlantis Hotel & Casino and Reno-Sparks Convention Center, but the company’s immediate focus remains on its Las Vegas operations. During the company’s fourth-quarter earnings conference call on February 12, 2025, Truist Securities gaming analyst Barry Jonas raised questions about the 8-acre site, noting its recent listing as "ready for development."
Red Rock President Scott Kreeger confirmed the company has been evaluating options, stating, "It is gaming entitled. It is a great location in Reno." He acknowledged there has been some internal discussion about the potential development of this site. "We’ve gone back and forth. We’ve looked at developing the project," Kreeger elaborated, emphasizing the value of their Reno parcel.
Despite the attractive positioning of the land, which Red Rock has owned since the 1990s, Kreeger reiterated the company’s priority lies with its Las Vegas developments. "From a priority perspective, we like the development opportunities we have in Las Vegas," he emphasized. Presently, the company's resources are heavily invested in the $120 million expansion of the Durango Casino & Resort, which is expected to complete by January 2026. This project aims to increase the gaming area and improve customer offerings.
The Reno area has seen competition from established gaming operators, such as Bally’s and Caesars Entertainment, creating potential challenges for any future development by Red Rock. Kreeger alluded to these market dynamics when explaining the focus on Las Vegas. "We’re always open to developing [the Reno site] at the right time," he stated. Yet, he remained cautious about the timelines for any potential project there, noting it could be "over the long-term, not anytime soon."
Speculation surrounds the fate of the parcel, as Red Rock has previously sold off land holdings in the Reno area, doing so most recently in 2021. The company's strategic direction suggests they may still pursue selling the Reno land if the right opportunity arises. Kreeger hinted at this possibility by commenting, "if we get an attractive offer for it, we would divest and sell."
The Reno-Lake Tahoe market remains vibrant and competitive, with multiple gaming options available for consumers. Red Rock’s management agreement for the upcoming North Fork Mono Casino & Resort, scheduled to open in California by 2026, also means they will be facing competition beyond Reno. Although this property is quite removed geographically, it still ties back to strategic resource allocation and market speculation for the company.
Elements influencing Red Rock's decision to engage with its Reno parcel may stem from not only their commitments and developments centered around Las Vegas but also from market saturation and fierce competition within the Reno-Lake Tahoe area. The elongated timeline for potential development of the 8-acre site might also reflect on how the company conducts its business. After all, maintaining agility and responding effectively to environmental factors can dictate long-term success within the gaming industry.
Analysts and industry insiders will undoubtedly keep their eyes on Red Rock Resorts as management continues to evaluate all options concerning their Reno land. With abundant competition bolstered by established operators already making their mark, future decisions concerning the Reno site will signal the company’s adaptability and pursuit of new opportunities within the ever-changing gaming market.
While the potential for development exists, the fate of Red Rock’s Reno parcel remains uncertain, with company leaders weighing the site's immediate potential against the vast opportunities within Las Vegas. Red Rock keeps its options open, and as Kreeger stated, the company is poised to act at "the right time and the right place" should the opportunity present itself.