Northern Nevada casino operator and famed Kentucky Derby-winning racehorse owner Mike Pegram and his group are on track to take over the operation of Hobey’s Casino in Sun Valley near Reno by the end of next week, when the acquisition is scheduled to close.
Pegram, who serves on the Board of Caesars Entertainment, currently operates five casinos in the Reno and Carson Valley area through his company G Peg LLC. He’s scheduled to appear before the Nevada Gaming Commission Dec. 18 for the licensing, following a recommendation by the Nevada Gaming Control Board. Gary Carano, executive chairman of the Caesars Entertainment Board, is part of the partnership called Sun Valley Casino, of which Pegram is the managing partner.
Pegram is seeking a slot-only license for Hobey’s that’s located in Washoe County. He said he was contacted by the Mandas family, current owners of the property, to gauge if he had an interest in the acquisition.
“We operate five small locals casinos in the northern Nevada market and felt Hobey’s was the perfect fit,” Pegram said. “Our sweet spot is operating in locations with between 300 and 600 machines. Hobey’s is around 350, with one bar and one restaurant. It’s our wheelhouse and what we do well and a perfect addition to our group.”
Pegram called Hobey’s a well-run family casino. The changes they plan to make will be cosmetic to give the property a more homey feel. People eat where they gamble and he said they will take food “very seriously” in repositioning the property. The casino will also add about 25 slot machines.
“We think there’s an opportunity from a marketing standpoint to market in that area,” Pegram said. “If you’re familiar with Sun Valley, it has mountains on both sides of it. We’re going to stay in the sweet spot there and make the most of it.”
Pegram said there’s opportunities for growth with Washoe County running out of living space. Sun Valley is only five minutes from downtown Reno, with vacant land as an unincorporated entity.
“The developers are coming and apartments are going to follow,” Pegram said.
Pegram said they will go in and evaluate the staffing, but he doesn’t see any immediate changes. G Peg is hiring at its existing locations, so if people are displaced, they can go somewhere else, he added.
The property has a William Hill sportsbook, and Pegram said they are looking to add kiosks.
The Board recommended a two-year license, because of the quick turnaround of the application. “It’s nothing derogatory,” said Board member George Assad. “It’s limited, because of time constraints.”
