The three major casinos in downtown Reno, other than Harrah's, are now under unified ownership. Eldorado Resorts, owner of the Eldorado and half owner of the Silver Legacy, has bought Circus Circus and half of the Silver Legacy from MGM Resorts International. Eldorado already owned half of the Silver Legacy. The deal closed in November.
The projected cost of the Silver Legacy, which opened in 1995, was $230 million. Eldorado purchased half of this 1,700 rooms plus the entire 1,572-room Circus Circus for a total of $72.5 million.
This clearly shows the strain the Reno gaming market has been under as Indian casinos in California have intercepted its customers from northern California. Another victim of this competition is the Siena Reno, a downtown hotel which was sold in May and closed its casino in June.
Of course, Reno is not alone gaming markets in suffering from increased competition. Atlantic City and the big Indian casinos in Connecticut are among others in the same boat. Foxwoods, in Connecticut, is hoping to make itself more attractive by adding an outlet mall. Atlantic City has been adjusting in large part by closing casinos.
I have no inside information, but my guess is that Eldorado resorts will close the Circus Circus casino, which should shore up business for its other two properties. Video poker pay tables at Circus Circus have been drastically downgraded, which suggests a short-term orientation toward the casino business.
What could Eldorado do with Circus Circus, which originally was built as a department store? My first thought was that the casino could be converted to a different type of attraction, such as an indoor water park. But it's possible that the property, which is near Interstate 80, a hospital and the University of Nevada - Reno, might bring in more money if used for a purposed unrelated to tourism.
Experts say that the key to revitalizing city centers is to get people to live downtown. I could see the Circus Circus site as a massive mixed-use project that could accomplish this goal for Reno. The housing element could be attractice to downtown casino workers, hospital nurses and other workers, and students and university staff.
It will be interesting to see how big Eldorado Resorts and "the biggest little city" will think in deciding on the future of Circus Circus.
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Patrons who accept 6/5 blackjack, resort fees and paying for drinks while gambling will pay for parking. Adjacent properties will have to charge for parking as well to avoid becoming free parking for MGM. Yet another reason to avoid the Strip.
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