The Atlantis in Reno, which is owned by Monarch Casino & Resort. David Calvert/The Nevada Independent
Northern California saw its highest snowfall levels in more than 70 years in the first three months of 2023, which kept the customers away from Northern Nevada’s casino markets.
Luckily, Reno-based Monarch Casino and Resorts has a property in Black Hawk, Colorado.
Thanks to its property 45 minutes outside of Denver, Monarch grew revenue by 8 percent to $116.6 million in the quarter that ended March 31. Cash flow grew 6.2 percent to $36.5 million. Monarch doesn’t break out results between its Black Hawk casino and its legacy Atlantis Casino Resort in Reno.
“Monarch noted severe weather conditions in Northern California had an impact on visitation for the Reno market,” Truist Securities gaming analyst Barry Jonas told investors in a research note.
According to the Nevada Gaming Control Board, weather issues caused Reno casinos to see a 12.1 percent decline in gaming revenue during the first three months of the year.
“(Monarch) management believes the impact drove a 20 percent year-over-year decline to (cash flow) for the Atlantis property, although this doesn't factor what growth would have been in a normal weather pattern,” Jonas said.
Monarch told investors the company, which recently completed room renovations at Atlantis’ original hotel tower, has begun a similar upgrade on the property’s newer hotel tower. The company said it has roughly 16 percent of the Reno market, whereas Caesars Entertainment has three resorts downtown.
“Monarch has seen more flattish share in past quarters given a more competitive market,” Jonas said. “The promotional environment in Reno has ticked up as the weather impacted visitation play and operators compete for more locals.”
This story was originally published by The Nevada Independent on April 26 and is republished here with permission.
