The sale of Harrah’s Reno to a Las Vegas-based developer closed Wednesday with the property having never reopened following its shutdown in March due to the coronavirus pandemic.
CAI Investments paid $41.5 million for the hotel-casino, which it plans to turn into a mixed-use development known as Reno City Center. The proceeds of the transaction were split: 75% to real estate investment trust VICI Properties, and 25% to Caesars Entertainment.
According to a statement, the annual rent payments under the regional master lease between Caesars and VICI will remain unchanged.
When the deal was announced in January, Caesars planned to continue to operate Harrah’s Reno into the summer. However, in June, Caesars notified the state, the city of Reno, and Washoe County that it would permanently lay off the property’s 471 employees, a move that officially removed the name Harrah’s from its roots in the Northern Nevada city after 83 years.
The end of Harrah’s Reno was telegraphed more than a year ago, when Reno-based Eldorado Resorts announced it was merging with Caesars in a $17.3 billion deal.
Eldorado already controlled three properties in the small downtown Reno gaming market – Eldorado, Silver Legacy, and Circus Circus, which are connected via pedestrian bridges and walkways and collectively referred to as “The Row.”
Harrah’s Reno created an overhang for the merger.
Harrah’s Reno opened in 1937 as the original casino in the Harrah’s chain founded by William F. “Bill” Harrah. Currently, there are 17 Harrah’s-branded casinos in 11 states.
Harrah was one of the five original inductees of what is now the American Gaming Association’s Gaming Hall of Fame in 1989. He is considered one of the industry’s influential pioneers.
The property opened as a small bingo parlor and casino. Over time, Harrah acquired other casinos and land parcels to expand his flagship resort. In 1968, he began construction on a 24-story high-rise that opened a year later. In 1981, a 100-room tower was added to Harrah’s Reno by its then-owner, the Holiday Inn Corp.
Bill Harrah died in 1978, but the company eventually grew into one of the industry’s largest regional casino operators, which included its 2003 purchases of Horseshoe Gaming and the World Series of Poker.
Harrah’s Reno was considered boutique by today’s Nevada resort industry standards, with a 40,000-square-foot casino and 900 hotel rooms.
Harrah’s Reno was more than just a gambling hall, however. Harrah’s Steak House was the first restaurant in Northern Nevada to be elected to the Fine Dining Hall of Fame, and a litany of legendary headliners – from Don Rickles to Jerry Lewis to Sammy Davis Jr. – performed in the casino’s showroom.
Reno has seen many older casinos close over the past two decades, and downtown leaders have long been attempting to revitalize the area.
Prior to the pandemic, gaming revenues produced by Reno casinos had bounced back after years of steep declines due to the recession and competition from California Indian properties. The market grew between 2012 and 2018, including 2017’s 8.7% increase and a 4.1% jump in 2018. However, Reno gaming revenues declined 1.6% in 2019 to $626.8 million.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
