Eldorado Resorts will have 100 percent ownership of the Silver Legacy once a deal with MGM Resorts is approved.
Reno-based Eldorado Resorts’ casinos have been on a roll in the third quarter.
The casino and resort operator, with business operations in five states, said its net income for the quarter ending Sept. 30 was $3.3 million, which reversed a net loss of $4 million in the same quarter a year ago, according to an Oct. 26 filing with the SEC. At the same time, overall revenue was $183.5 million, a 4 percent decline from the $191 million recorded in 2014.
The drop reflects investments by the publicly traded company in facility expansions and property upgrades during the quarter to attract more clientele, said company officials.
“We continue to make significant progress with our property enhancement initiatives that target product and service offerings upgrades across our entire portfolio, said Gary Carano, chairman and CEO of Eldorado in a statement.
“During the third quarter, we also entered into an agreement to acquire MGM’s 50 percent interest in the Silver Legacy Resort Casino and all of the assets of Circus Circus Reno.
“We expect that the Nevada Gaming Commission will make a determination regarding this acquisition at its November meeting and that we will close the acquisition shortly after obtaining the Nevada Gaming Commission’s approval,” said Carano.
Upon completing the transaction, Eldorado will own the three leading downtown Reno casino resorts and expects to benefit from opportunities for synergies and operating efficiencies across the properties.
Looking just at its Nevada properties in the most recent quarter, net revenues of $29 million were realized at Eldorado, a 3.5 percent increase year over year, the company said.
Net revenues at Silver Legacy, a joint venture between Eldorado and MGM Resorts International, increased 10.2 percent to $38 million in the third quarter of 2015 compared to $34.5 million in the third quarter of 2014.
The higher revenue for both Eldorado Reno and Silver Legacy compared to the prior year reflect the overall growth in the Reno market, lower gas prices and an improving economy, said gaming analysts.
