The Atlantis in Reno. David Calvert/The Nevada Independent
Reno-based Monarch Resorts said its hometown Atlantis is now facing competitive challenges from new tribal gaming properties in Northern California. However, the company’s financial prospects are supported by its flagship resort in Black Hawk, Colorado.
Monarch released its fourth-quarter and year-end results on Valentine’s Day through a filing with the Securities and Exchange Commission, reporting net revenue of almost $501.5 million in 2023, up 4.9 percent from a year ago. Profits of $824 million were down almost 6 percent.
Monarch doesn’t break out the results separately for its two properties.
In a statement, CEO John Farahi said Atlantis operates in an “extremely competitive promotional environment” with tribal resorts offering various discounts and incentives to keep customers from making the drive to Reno. In the past two years, the Sacramento area has seen three new casinos open, including properties operated by Caesars Entertainment and Boyd Gaming.
To help entice customers to make the drive, Atlantis has been renovating the hotel and making other upgrades. The improvements, which have taken place during the past year, will continue through June.
After talking with Monarch officials about the results, Truist Securities gaming analyst Barry Jonas told investors in a research note that Atlantis appeared to increase its share of the Reno market despite the challenges.
“We continue to see Reno as among the most competitive markets in the U.S., with Northern California tribal gaming and irrational promotional intensity in Reno making sustained growth difficult for Atlantis,” Jonas wrote.
The analyst noted that Atlantis saw a jump in business from Bay Area residents making the trek to Northern Nevada to wager on Super Bowl LVIII, particularly the San Francisco 49ers. California does not have legal sports betting. Jonas said the overtime 25-22 loss by the favored 49ers to the Kansas City Chiefs “was a benefit” to the sportsbook’s hold percentage on wagers.
This story was published Feb. 21 by The Nevada Independent and is republished here with permission.
