US hotel and casino gaming firm Station Casinos has cast doubt over the reopening of four of its Southern Nevada properties following the challenges posed to the business during recent weeks and months.
During an earnings call Frank Fertitta III, CEO of Red Rock Resorts, the parent company of Station Casinos, said that it is not yet safe to reopen the venues as well being unsure if and when that time will come.
The casino properties in question are Las Vegas pair Texas Station Gambling Hall and Hotel and the off-Strip Palms Casino Resort, as well as Fiesta Henderson Casino Hotel and Fiesta Rancho Casino Hotel situated in the nearby city of Henderson.
“We don’t know if or when we’re going to reopen any of the closed properties,” Fertitta said. “We think it’s too early to make that decision.”
Red Rock Resorts shutdown operations at its Nevada-based businesses on March 17 following a mandatory order issued by Governor Steve Sisolak. Similarly, northern California’s Graton Casino Resort, which is managed by the company, closed on March 17.
On June 4, the company reopened its Red Rock Casino, Resort and Spa, Green Valley Ranch Resort, Spa and Casino, Santa Fe Station Hotel and Casino, Boulder Station Hotel and Casino, Palace Station Hotel and Casino and Sunset Station Hotel and Casino properties, together with its Wildfire properties. The Graton Resort Casino also partially reopened on 18 June.
The update comes as the firm published its quarterly report, which highlighted that, due to the enforced closures, net revenue for the second quarter dropped 77.5 per cent to $108.5m (2019: $482.9m), net loss fell from $7.1m to $118.4m and adjusted EBITDA finished at a loss of $17.3m, representing a 115 per cent swing from a profit of $115.2m recorded a year earlier.
“So far, we’re pleased with the results we’ve had and the ability to move some of the play from our closed properties to our existing properties,” Fertitta added.
“We’re going to continue to get clarity and to navigate the situation to make well-informed decisions. Whatever decisions we make will be made in the best interest of shareholder value.”