Entertainment company RCI Hospitality Holdings has withdrawn its applications to operate casinos from the Colorado Division of Gaming.
The company, known for operating strip clubs and nightclubs like Rick’s Cabaret and restaurants like Bombshells Restaurant and Bar, also disclosed its intention to develop its share buyback program.
The decision follows the NASDAQ-listed company’s acquisition of three properties in Central City for potential casino developments, which will not proceed as planned. The company also intends to sell other properties that are no longer required, including a 20,000-square-foot building and another site initially intended for a 30,000- to 40,000-square-foot development.
Still, RCI confirmed progress on its plans to open a Rick’s Cabaret and Steakhouse in Central City without gambling. The company acquired a 30,000-square-foot building for this venture in December 2022, initially designed to include 200 slot machines and six table games alongside the nightclub and steakhouse.
“As we said on our last conference call, we are going ‘back to basics,’ focusing on the core tenets of our capital allocation strategy, to concentrate on our core businesses, generate higher sales, cut costs, optimize underperforming locations, finish projects as fast and efficiently as possible and buy back shares,” RCI CEO and President Eric Langan said in a press release.
For the third quarter ending June 30, RCI recorded a 1.1 percent decrease in sales and 1.5% on a same-store basis, amounting to $75.5 million compared to the previous year. This decline was primarily attributed to an 8.9 percent decrease in Bombshells sales to $13.1 million, while nightclub sales saw a 0.7 percent increase to $62.4 million.
