Calling it a “historic time for Las Vegas gaming,” the Nevada Gaming Control Board Wednesday recommended a California tribe be the first to own a casino in the market when it acquires the Palms.
The Nevada Gaming Commission will have the final approval on Dec. 16, but there were no hiccups during the hearing. The San Manuel Band of Mission Indians is set to pay $650 million to Red Rock Resorts for the Palms and Palms Place condominiums adjacent to it in a deal set to close by the end of the year. The casino and 700-room hotel, which have been closed since the onset of the pandemic in March 2020, is expected to reopen sometime in the spring.
“Monumental. Historic. Humbling. These are the best words that describe this moment for the San Manuel Tribe.”
That’s how Latisha Casas, chairwoman of the San Manuel Gaming and Hospitality Authority, opened her remarks to the three-member board. Those phrases were repeated throughout the hearing.
Board Chairman J Brin Gibson said it’s great to see tribes export expertise off their reservations. The tribe operates a casino in San Bernardino. “I’m excited to see the San Manuel Tribe here in Vegas.”
Casas said they’re not a corporation, but a tribe with a long-term focus to secure the future of its tribal members. “We know that Las Vegas is and will always be the gaming and entertainment hub in North America, and we’re honored to potentially join and contribute to this community and its legacy.”
CEO Laurens Vosloo said with the $690 million Red Rock Resorts spent on renovating the property in 2019, the tribe got it at a great price. The tribe can leverage its strategic philanthropy in sports partnership to expand its reach and strengthen the brand. In addition to the $650 million in acquisition costs, the tribe set aside $100 million in working capital and to get ready for opening, he said.
“The Palms represents the next phase of San Manuel’s long-term diversification strategy and has the potential to be a generational asset for the tribe,” Vosloo said. “Las Vegas is the mecca of gaming in the United States and it’s poised for a strong rebound. We believe the timing is very good for gaming and tourism in 2022.”
Las Vegas casino veteran Cynthia Kiser Murphey, a former executive with MGM Resorts International who serves as the Palms new general manager, said she’s honored, humbled, and grateful to be a part of the project.
“It’s not lost on us how historic this moment is,” Kiser Murphey said. “It is our responsibility to do it and do it right and make sure the people of Las Vegas know we are here and find our place in the community. We will do it with all of the values and history of this wonderful tribe.”
Kiser Murphey called the Palms an “incredibly beautiful property” that was remodeled with meticulous attention to detail. She added it has beautiful rooms, suites, restaurants, and a vibrant gaming floor. “We look forward to bringing this beautiful property back to Las Vegas and bringing 1,200-plus Nevadans back to work.”
The Palms will take advantage of the views at the property, celebrate the city’s sports teams, restore its energy, and reopen great dining opportunities, Kiser Murphey said. “We will be activating the pool complex in a way that’s very interesting, wonderful and comfortable for our guests and the community.”
Kiser Murphey said little in terms of renovation work needs to be done. They plan to improve areas for employees and update the sportsbook technology. The tribe is negotiating with a Nevada operator to operate the sportsbook.
“We have work mechanically to bring it back, and we have a lot of work to do in today’s supply-chain challenge to bring back the property by ordering linens, chips, cards, dice and other supplies,” Kiser Murphey said.
The team of 12 people in place now will grow to more than 1,200 in the coming weeks. Kiser Murphey said it’s important to recall the former Palms employees and many want to come back. There will also be community outreach with job fairs and civic functions.
“Our goal is to open as soon as we can and as soon as we can do it right, because you only get one chance to do this right and engage and make the Palms a very special place,” Kiser Murphey said. “Our plan is to open as many of the venues simultaneously as possible and we expect that will be around the pool season.”
Once the tribe is licensed, the Palms will start sales of more than 30,000 square feet of convention and meeting space.
