Harvey could impact business for 3 Nevada-based casino operators

Three Nevada-based casino operators could see business impacted in the short-term by Hurricane Harvey as Texas residents potentially cut weekend travel to repair their damaged homes and businesses.

However, one Wall Street analyst says Harvey could potentially have a positive impact on the casinos.

Boyd Gaming, Pinnacle Entertainment and Eldorado Resorts Inc. all have casinos located near the Texas border in Louisiana, including Lake Charles, a popular getaway for Houston residents.

The lake is located about a two-hour drive from the Houston metropolitan area, the nation’s fourth largest by population.

Hurricane Harvey dumped more than 40 inches of rain over eastern Texas this week, causing catastrophic flooding that damaged hundreds of thousands of homes and displaced more than 30,000 people. The storm then dumped more rain on Louisiana, though damage was minor.

“No doubt there will be some impact on business in the short-term,” said Troy Stremming, executive vice president of government relations and public affairs for Pinnacle, adding that Houston is a major feeder market for the company’s Lake Charles resort.

However, the impact isn’t so straightforward. While some Texas residents and companies may cancel room reservations and group meetings at Lake Charles resorts, others are looking to them for temporary shelter.

Pinnacle’s L’Auberge Casino Resort at Lake Charles has seen residents of Beaumont, Texas, a nearby town of 120,000, book rooms to escape the flooding and a lack of running water.

“It is uncomfortable to be in that hot environment without water,” said Stremming.

The storm hit land ahead of the Labor Day holiday, a top 10 weekend for hotels and casinos around the United States.

Stremming said L’Auberge, which has about 1,000 rooms and suites, is full this weekend and will hold its planned concert.

Everything is operating at the casino except the golf course, which needs time to drain out and dry, he said.

L’Auberge at Lake Charles accounts for about 10 percent of Pinnacle’s property earnings before interest, taxes, depreciation and amortization.

Pinnacle shares fell as much as 4.8 percent this week amid concern over the hurricane’s impact on one of the company’s biggest casinos.

Stremming said he expects business at L’Auberge to return to normal once Houston gets back on its feet.

Stremming said the company’s other two Louisiana properties in Baton Rouge and Bossier City have seen almost no impact from Harvey.

Boyd has five casinos in Louisiana, including Delta Downs Racetrack, Hotel and Casino, located about 27 miles west of Lake Charles.

“Delta Downs draws heavily from Houston and east Texas. We are still assessing what that means for our business, but it is premature to provide specific details or predictions on business volumes,” said Boyd spokesman David Strow.

Reno-based Eldorado Resorts has two casinos in Louisiana, one at Lake Charles and another in Shreveport. The company wasn’t immediately available to comment on the storm’s impact on its business.

Hotels in Houston and the surrounding markets that have not been damaged by the storm are generally fully occupied by displaced residents and transient visitors, said David Katz, a gaming and hospitality analyst at New York-based Telsey Advisory Group.

“We believe these circumstances should persist for an extended period of time as the repair efforts begin and ramp up,” Katz said in a note on Friday. “History suggests these population dynamics could have a positive impact on gaming volumes in Lake Charles, as it is the nearest gaming market to Houston, as well as other Louisiana markets.”

Contact Todd Prince at tprince@reviewjournal.com or 702-383-0386. Follow @toddprincetv on Twitter.

ad-high_impact_4
Business
The Venetian gondoliers sing Italian songs
Gondolier Marciano sings a the classic Italian song "Volare" as he leads guests through the canals of The Venetian in Las Vegas. (K.M. Cannon/Las Vegas Review-Journal)
Building In Logandale
Texas homebuilder D.R. Horton bought 43 lots in rural Logandale. (Eli Segall/Las Vegas Review-Journal)
Indoor farming in Southern Nevada
Experts discuss Nevada's indoor farming industry. (Bailey Schulz/Las Vegas Review-Journal)
Former Fontainebleau could have become a Waldorf Astoria
Months after developer Steve Witkoff bought the Fontainebleau last summer, he unveiled plans to turn the mothballed hotel into a Marriott-managed resort called The Drew. But if Richard “Boz” Bosworth’s plans didn’t fall through, the north Las Vegas Strip tower could have become a Waldorf Astoria with several floors of timeshare units. (Eli Segall/Las Vegas Review-Journal)
LVCVA CEO Rossi Ralenkotter announces plans to retire
Rossi Ralenkotter, CEO of the LVCVA, on Tuesday confirmed a Las Vegas Review-Journal report that he is preparing to retire. Richard N. Velotta/ Las Vegas Review-Journal
Cousins Maine Lobster to open inside 2 Las Vegas Smith’s stores
Cousins Maine Lobster food truck company will open inside Las Vegas’ two newest Smith’s at Skye Canyon Park Drive and U.S. Highway 95, and at Warm Springs Road and Durango Drive. Cousins currently sells outside some Las Vegas Smith’s stores and at Fremont Street and Las Vegas Boulevard. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas home prices to continue to rise, expert says
Lawrence Yun, chief economist at the National Association of Realtors, gives homebuyers a pulse on the Las Vegas housing market. (Eli Segall/Las Vegas Review-Journal)
NV Energy announces clean energy investment
The company is planning to add six solar projects in Nevada, along with the state's first major battery energy storage capacity. Bailey Schulz/Las Vegas Review-Journal
3 Mario Batali restaurants on Las Vegas Strip to close
Days after new sexual misconduct allegations were made against celebrity chef Mario Batali, his company announced Friday that it will close its three Las Vegas restaurants July 27. Employees of Carnevino Italian Steakhouse, B&B Ristorante and Otto Enoteca e Pizzeria, all located in The Venetian and Palazzo resorts, were informed of the decision Friday morning. Bastianich is scheduled to visit the restaurants Friday to speak to employees about the next two months of operation as well as how the company plans to help them transition to new positions.
Nevada has its first cybersecurity apprenticeship program
The Learning Center education company in Las Vegas has launched the first apprenticeship program for cybersecurity in Nevada. It was approved by the State Apprenticeship Council on May 15. (K.M. Cannon/Las Vegas Review-Journal)
Las Vegas union members voting to authorize the right to strike
Thousands of Las Vegas union members voting Tuesday morning to authorize the right to strike. A “yes” vote would give the union negotiating committee the power to call a strike anytime after June 1 at the resorts that fail to reach an agreement. (Todd Prince/Las Vegas Review-Journal)
Small businesses struggle to find qualified candidates
A 2018 survey found that over two-thirds of small businesses in Nevada find it somewhat to very difficult to recruit qualified candidates. Bailey Schulz/Las Vegas Review-Journal
Nevada secretary of state website offers little protection against fraudulent business filings
Property developer Andy Pham tells how control of his business was easily seized by another person using the secretary of state website.
Caesars may be going solo in its marijuana policy
Several Southern Nevada casino companies aren’t following Caesars Entertainment’s lead on marijuana testing.
How much is the Lucky Dragon worth?
Less than a year-and-a-half after it opened, the Lucky Dragon was in bankruptcy.
Gyms and discount stores take over empty retail spaces
Grocery stores used to draw people to shopping centers. But many large retail spaces have been vacant since 2008. Discount stores like goodwill and gyms like EOS Fitness are filling those empty spaces, and helping to draw shoppers back in. K.M. Cannon/Las Vegas Review-Journal
Funding source of Las Vegas stadium for the Raiders is sound, expert says
The stadium is funded in part by $750 million of room taxes, the biggest such tax subsidy ever for a professional sports stadium. Robert Lang, executive director of Brookings Mountain West and The Lincy Institute at UNLV, says that is a good use of public funds. (Richard Velotta/Las Vegas Review-Journal)
Las Vegas needs light rail, expert says
Robert Lang, executive director of Brookings Mountain West and the Lincy Institute said he is afraid of a "congestion mobility crisis." Las Vegas needs a light rail system, he said, to accommodate the city's growing number of attractions. (Richard Velotta/Las Vegas Review-Journal)
Three takeaways from Wynn Resorts' Earnings Call
Matt Maddox came out swinging in his first earnings conference call as Wynn Resorts chief executive officer, boasting of record Las Vegas quarterly revenues and applicants lining up for work.
Star Wars VR Comes to Las Vegas
Sneak peak at the new "Star Wars: Secrets of the Empire" VR experience at the Grand Canal Shoppes.
Elaine Wynn continues her fight to change Wynn Resorts board
Elaine Wynn, the largest shareholder of Wynn Resorts Ltd., is seeking to kick a friend of her ex-husband Steve Wynn off the company’s board of directors. (Todd Prince/Las Vegas Review-Journal)
Zillow is getting into house flipping in Las Vegas
Las Vegas Review-Journal real estate reporter Eli Segall says flipping houses has waned in popularity after the housing bubble burst.
Ellis Island Buys Mt. Charleston Lodge
Ellis Island, which operates a casino, brewery and hotel just off the Strip, purchased the Mt. Charleston Lodge in early April.
Casinos to be penalized for allowing drug-impaired customers to gamble
Nevada Gaming Commission Chairman Tony Alamo talks about an amendment making casinos subject to the same disciplinary standards of preventing people to gamble if impaired by drugs as they are for letting them play while intoxicated by alcohol.
Terrible Herbst to open large travel center in Southern Nevada
The 50,000-square-foot commercial travel center will include 96 fuel pumps and the third White Castle restaurant in Southern Nevada. Wade Tyler Millward reports.
Art Bell’s Top 10 Shows
A selection of radio host Art Bell’s most popular shows.
Hooters owner talks about room upgrades at his hotel-casino
George Ruff, founder and senior principal of Trinity Hotel Investors L.L.C., owner of Hooters Hotel and Casino in Las Vegas, talks about recent room upgrades at the hotel. K.M. Cannon/Las Vegas Review-Journal
Passengers Discuss Allegiant Air
Allegiant Air passengers voice their views on the airline at McCarran International Airport on April 16, 2018. (Bailey Schulz/Las Vegas Review-Journal)
Longtime Las Vegas attorney John Momot dies at age 74
Criminal defense attorney John Momot, who represented mob figures and even played himself in the movie “Casino,” has died.
Trump Slams Amazon for Not Paying Enough in Taxes
Trump Slams Amazon for Not Paying Enough in Taxes Trump tweeted his concerns about the company on Thursday. This isn't the first time Trump commented on the issues via Twitter. August 2017 December 2017 Amazon did hold back on paying state taxes in 1995, but the company has been routinely collecting state sales taxes since then. In 2016, the company's report from the Securities and Exchange Commission confirmed it paid $412 million in taxes.
TOP NEWS
News Headlines
Home Front Page Footer Listing
Circular
You May Like

You May Like