Golden Leisure’s (NASDAQ:GDEN) Colorado Belle On line casino Resort in Laughlin, Nevada is approaching 30 months in closure. The operator is mulling choices for the venue.
In response to a query from B. Riley analyst David Bain, Golden CEO Blake Sartini addressed the matter earlier this week on the corporate’s second-quarter earnings convention name. The chief govt officer famous the operator is sustaining the gaming license for the riverfront casino-hotel whereas “exploring A to Z alternatives for that piece of property.”
The best way I view that down there’s I feel that market in some unspecified time in the future might use a major visitors driver,” Sartini on the decision. “I feel the capability that we presently have with the rooms and the on line casino stock is adequate for what we see going ahead down there.”
Golden operates the Aquarius and Edgewater gaming venues in Laughlin. That places it in competitors with Caesars Leisure (NASDAQ:CZR) because the dominant on line casino title in that metropolis.
Colorado Belle Is Distinctive Venue
Closed through the early days of the coronavirus pandemic in 2020, Colorado Belle sits alongside the Colorado River and embraced that location, sporting a riverboat theme.
Although not fully goal on the matter, Sartini describes the casino-hotel as “a one-of-a-kind piece of property” that provides sturdy progress prospects and visibility within the Laughlin market.
That doesn’t essentially imply Golden will rush to reopen the venue. Nevada operators with a number of venues in single markets realized they may do extra with much less. For instance, Pink Rock Resorts’ (NASDAQ:RRR) is completely closing Fiesta Henderson, Fiesta Rancho, and Texas Station within the Las Vegas space.
Likewise, Boyd Gaming (NYSE:BYD) seems unlikely to reopen Eastside Cannery. Golden might take a web page from these playbooks and apply it to Colorado Belle, notably as a result of the operator’s different Laughlin venues are thriving.
Golden Has Choices for Colorado Belle
As holder of the gaming license and proprietor of the actual property, Golden holds all of the playing cards in the case of Colorado Belle’s future.
The operator might demolish the venue, flip it right into a non-gaming venue, or promote it to a competitor, although none of these concepts have been particularly talked about on the convention name.
“I see that (Colorado Belle) as a worthwhile asset in shut proximity to our two property, that are the most effective situated out there that may be utilized, I feel, to drive further visitors,” famous Sartini.
Clearly, Laughlin isn’t Las Vegas. However the former may very well be interesting to a smaller gaming outfit trying so as to add Nevada publicity. Likewise, Golden might see worth in finally reopening Colorado Belle.
Heading into Golden’s most up-to-date earnings report, “Buyers have been involved with Laughlin tendencies given pressures from larger fuel costs. This drive-to market largely targets vacationers from SoCal, Arizona and Las Vegas, thus larger fuel costs improve prices to achieve the vacation spot. Regardless of trade visitation/GGR down 4%/5% YoY in 2Q, GDEN’s properties gained market share as a full schedule of live shows/occasions helped develop visitation and non-gaming income,” stated Roth Capital analyst Edward Engel in a latest consumer observe.