Posted: August 13, 2022, 4:27 AM.
Last updated on: August 13, 2022, 4:47 AM.
Golden Entertainment’s (NASDAQ:GDEN) Colorado Belle Casino Resort in Laughlin, Nevada is approaching its 30-month closure. The operator is considering options for the location.
Colorado Belle of Golden Entertainment in Laughlin, Nevada. The operator said it is considering several plans for the site. (Image: YouTube)
In response to a question from B. Riley analyst David Bain, Golden CEO Blake Sartini spoke about the matter on the company’s second-quarter conference call earlier this week. The chief executive officer noted that the operator is maintaining the gaming license for the riverside casino hotel while “exploring the A to Z opportunities for that piece of property.”
As I see it down there, I think that market could use a major traffic driver at some point,” Sartini said. “I think the capacity we currently have with the rooms and casino inventory is sufficient for what we see happening down there.”
Golden operates the Aquarius and Edgewater play locations in Laughlin. That puts it in competition with Caesars Entertainment (NASDAQ:CZR) as the dominant casino name in that city.
Colorado Belle is a unique location
Closed during the early days of the 2020 coronavirus pandemic, Colorado Belle sits along the Colorado River and embraces that location, with a riverboat theme.
While not entirely objective, Sartini describes the casino hotel as “a unique piece of property” that offers strong growth prospects and visibility in the Laughlin market.
That doesn’t necessarily mean Golden will rush to reopen the venue. Nevada operators with multiple locations in separate markets realized they could do more with less. For example, Red Rock Resorts (NASDAQ:RRR) permanently closes Fiesta Henderson, Fiesta Rancho and Texas Station in the Las Vegas area.
Likewise, Boyd Gaming (NYSE:BYD) seems unlikely to reopen Eastside Cannery. Golden could take a page from those playbooks and apply it to Colorado Belle, especially since the operator’s other Laughlin locations are doing well.
Golden has options for Colorado Belle
As the gambling license holder and owner of the property, Golden holds all the cards when it comes to Colorado Belle’s future.
The operator could demolish the location, turn it into a non-gambling location, or sell it to a competitor, although none of those ideas were specifically mentioned during the conference call.
“I see that (Colorado Belle) as a valuable asset in close proximity to our two assets, which are best located in the market and which, I believe, could be used to generate additional traffic,” Sartini noted.
Obviously Laughlin is not Las Vegas. But the former could appeal to a smaller gaming outfit looking to add Nevada fame. Likewise, Golden could see the value in eventually reopening Colorado Belle.
In Golden’s most recent earnings report, “Investors were concerned about the Laughlin trends given the pressure from higher gas prices. This drive-to market largely caters to tourists from SoCal, Arizona, and Las Vegas, causing higher gas prices to increase the cost of getting to the destination. Despite a 4%/5% year-over-year decline in industry/GGR attendance in the second quarter, GDEN properties gained market share as a full schedule of concerts/events helped grow attendance and non-gaming revenue, Roth Capital analyst Edward Engel said in a recent client note.
This post Colorado Belle Still Closed, But Gold Prevailing Location Ideas
was original published at “https://www.casino.org/news/colorado-belle-still-closed-but-golden-considering-ideas-for-venue/”