In a back-and-forth over the Fourth of July weekend, Affinity Gaming laid the blame on the Primm family for its shutting down casino operations on the Nevada/California border after 15 years. Affinity said the family was unwilling to renegotiate its lease.
Affinity released a statement Sunday announcing that it had completed the transition of the Primm Valley Casino Resorts to the Primm landlord and Terrible’s operated by the Herbst family.
Herbst has taken over the lottery store and service stations in Primm, in addition to the three casinos, including Primm Valley Casino, whose reopening date hasn’t been announced. Buffalo Bill’s Resort & Casino, which has been closed, will open periodically to preserve the license. Whiskey Pete’s casino will remain closed, but it has a service station with 18 slot machines.
Affinity announced in May that it was shutting down on July 4. Nevada regulators on June 25 approved a license for Terribles to operate in their place.
“Contrary to what has been reported in the press, the discussions between (Affinity) and the Primm landlord regarding the Primm property lease began more than two years ago,” the company said in a statement. “This was done in conjunction with a comprehensive third-party valuation process and market outreach.
“(Affinity) determined that the economics of the Primm leasehold interest were no longer viable and the Primm landlord was not willing to reduce the rent to a sustainable amount,” the statement said. “The Primm property was a cash drain of approximately $10-$15 million per year for many years, and there was no commercially rational basis to continue investing in the property or to financially support its continued operations.”
In response to that statement, Cory Clemetson, president of the Primm South Real Estate Company and grandson of Primm founder Ernie Primm, said, “We disagree with that assessment from our former tenant. Consider the source. This is the same company that made the ill-advised decision to lay off more than 300 Nevadans on our nation’s 250th anniversary. That would have shut down this crucial gateway to Southern Nevada at the worst possible time, been an embarrassment to our state, and created a tremendous hardship for everyone involved. That’s all you need to know about their credibility.”
Without commenting on the spat, Terrible’s management released a statement Monday saying they have approached the partnership with the Primm family as part of a commitment of “Nevadans helping Nevadans” and a long-term vision to restore, enhance, and reenergize an iconic gateway to Nevada for generations to come.
“As planned, we took over management of the Primm Center, Chevron Gas Station, Flying J, Whiskey Pete’s Travel Store, Lotto Store, and Starbucks on July 1,” the statement said. “Working alongside the employees, the Terrible’s team successfully reopened each of these properties by July 2, in time for holiday travelers.
“As previously stated and planned, we gained management control of the gaming properties at 12:01 a.m. on July 5,” the Terrible’s statement said. “This includes Primm Valley Casino, Buffalo Bill’s Casino, and Whiskey Pete’s Casino. With Whiskey Pete’s and Buffalo Bill’s previously closed by prior operators, Primm Valley Casino was the only casino property that was open prior to our management transition, and our immediate focus is to reopen this property in the coming weeks.”
The statement went on to say longer-term plans for Primm, including Buffalo Bill’s and Whiskey Pete’s, are still being finalized.
“Terrible’s and the Primm family share a commitment to identifying meaningful opportunities for investment, infrastructure improvements, enhanced amenities, and new experiences that will strengthen the properties and support sustainable growth for years to come,” the statement said. “We will share additional details as our plans continue to take shape.”
Terrible’s management said it offered every team member employment and of those who wished to remain, it retained and onboarded 100%, approximately 300 people. In addition, on-site employee housing remains open and active, allowing employees to keep their homes.
In its statement, Affinity mentioned its long history with the Herbst family, having worked together during the Herbst Gaming bankruptcy restructuring more than a decade ago.
Herbst Gaming was taken over following a bankruptcy filing in 2009 after the Great Recession and later became Affinity Gaming in 2011. The Herbst family previously operated the three Primm casinos that it acquired from MGM Mirage in 2007 for $400 million.
Terrible’s has operated convenience stores, travel plazas, casinos, lounges, and recently bars and taverns throughout Nevada for more than 65 years. It has casinos in such rural Nevada locations in Pahrump, Indian Springs, Fernley, and Searchlight.
