A $1.3 billion transaction in which British Petroleum sought to acquire TravelCenters of America prompted the Nevada Gaming Commission to hold a special meeting last Friday to facilitate the transfer of gaming licenses at five truck stops in the state to a previous owner to avoid a shutdown and loss of jobs.
The deal between BP PLC, the British multinational oil and gas company headquartered in London, and TravelCenters of America was announced on Feb. 16 and fast-tracked to close at 8 a.m. ET Monday, May 15. There wasn’t enough time for BP to go through the Nevada gaming-licensing process, if they were even interested in doing so, which prompted TravelCenters of America to jettison its Nevada operations.
In the meantime, Travel Centers reached out to Robert Cashell, Jr., in March. The Cashell family, headed by late Reno Mayor and Lieutenant Governor Robert Cashell, had previously owned the truck stops. Cashell, Jr., is a board member at Red Rock Resorts and has been involved in the gaming industry for more than 30 years.
Cashell serves as president of RPI, Inc. and his wife Ermelinda is on the board of directors. RPI will take over the casino licenses and enter into a lease with the new property owner, BP. TravelCenters has the right to re-acquire the operations in five years.
The Nevada Gaming Control Board met Thursday and the Nevada Gaming Commission on Friday to pave the way for the transfer as part of an application that was processed in just over three weeks.
Gaming attorney Dan Reaser of the Fennemore law firm, said there are four non-restricted licensees in Nevada: Wells, Mill City, Sparks, and Las Vegas at Blue Diamond Road and Dean Martin Drive. They range in size from 2,700 to 7,150 square feet and operate between 52 and 164 gaming devices, along with table games in Sparks and Las Vegas. A restricted location in North Las Vegas has 15 machines. Three separate William Hill licenses as include sportsbook counters in Sparks and Las Vegas.
The centers’ 105 employees will be part of the acquisition and will retain their benefits, which will even be enhanced, Reaser said.
Because it could not get licensed in Nevada in time, BP was faced with a decision to close the businesses and surrender the gaming licenses. In a $1.3 billion deal, “This was not a major part of that transaction,” Reaser said.
Reaser called Cashell a natural candidate to take over the licenses. Eight years ago, he owned and operated the five properties and sold them to TravelCenters, so he was familiar with the locations and financial profile. He also hired many of the people still working there.
RPI is a holding company registered with the Commission and is sole shareholder of two separate gaming licenses, one for Topaz Lodge on the California border and another for Winners Hotel & Casino Inc. that owns four non-restricted locations in Humboldt County: Winners Inn, Pete’s Gambling Hall, Sundance Casino, and Winnemucca Inn. He will now have a third license.
Cashell had a few emotional moments while listening to the support he’s received over the two days of hearings. He said he reflected on opening the Alamo Travel Center in Sparks in 1989 with his dad; many employees have been there for more than 30 years.
If the properties closed, those employees would be laid off and it could take another 18 to 24 months for a party to be licensed and be reopened under BP or another brand, Cashell said.
“I recognize that 105 employees isn’t a big deal on the Strip, but it’s a big deal in Wells, Nevada, and even a big deal in Las Vegas,” Cashell said. “I don’t know if obligation is the right word, but I felt a strong motivation to see if I couldn’t undertake the Herculean effort to do this.”
He said that the Cashell’s have been licensed continuously for almost 60 years in Nevada, with multiple licenses in multiple locations. He said he’s never stood before the Commission with this sort of request and the commissioners didn’t have to act.
“The culture my dad raised me in and I’ve continued is the licenses we hold are a privilege and not a right,” Cashell said. “The fact that all of you have come together to make this happen says something about our industry and that we care about our employees. It talks about the kind of state we’re in. It’s remarkable to think we’ve negotiated all of these agreements in less than 45 days. BP is no small company. I’ve been on the phone with where attorneys are in London, Chicago, and Houston, and all for five little casinos in Nevada. It was a priority for BP too.”
Commission Chair Jennifer Togliatti said it was important to have a special meeting. given the circumstances, and her colleagues agreed.
“Those properties have a lot of history and we don’t want to lose them,” said Commissioner Rosa Solis-Rainey.
Commissioner Ogonna Brown praised the speed with which the process moved and thanked Cashell for stepping up.
Commissioner Brian Krolicki said people in urban areas don’t understand the importance of these casino operations, or even what restaurants mean, to rural areas.
“The impact on these rural places is unreal,” Krolicki said. “Mr. Cashell Sr. is smiling on this transaction. Good on all of you.”
The matter required action not only by the Commission, but around the state. The Elko Daily Free Press reported that the Elko County Commissioners approved a temporary gaming license and the Wells City Council will vote Monday as a move to save jobs and tax revenue. The Wells casino is expected to be closed for a few hours Monday until an approval is granted during an 8 a.m. meeting.
TravelCenters of America is the nation’s largest publicly traded full-service travel-center network, with more than 18,000 employees at 281 locations in 44 states under the TA, Petro Stopping Centers, and TA Express brands.
