The Nevada Gaming Commission on Thursday approved billionaire Tilman Fertitta’s acquisition of the Hard Rock Lake Tahoe resort, a deal that’s scheduled to close Friday and be rebranded as the Golden Nugget Lake Tahoe Hotel and Casino within the next 30 days.
Fertitta, who appeared before the Nevada Gaming Control Board two weeks ago, didn’t attend Thursday’s meeting of Commission members. Terms of the March-brokered deal with Paragon Gaming have not been disclosed. It’s expected to close with cash.
The 539-room hotel-casino will be renovated and turned into a gaming-centric operation with more amenities.
In comments before the unanimous vote to approve the sale and licensing, Commissioner Brian Krolicki said the resort is in his Lake Tahoe neighborhood and welcomes the investment in the community by Fertitta.
“We’re a small community, so a $227 million capital infusion is a big deal,” Krolicki said. “For the parents of kids who grew up with my kids and make their living off the property, it’s important. Every rendition of this property for the last 35 years has been a bit tired and needed a little help. Your business assessment is correct that it could reach another level. With the convention center across the street opening next week at a special event, this is an amazing and welcome addition. It’s a global spot and to have this kind of capital coming in is a testament to the durability and attractiveness of Lake Tahoe as a gaming and hospitality destination.”
In discussing the plans for the property, Fertitta’s attorney Sonia Vermeys, with Brownstein Hyatt Farber Schreck, told the Commission that the buyers intend to retain the current employees and their benefits.
“They intend to do significant remodeling in phases and wrap this company into their existing loyalty program,” Vermeys said
Sarah Peters, a senior corporate counsel for Feritta, said it’s important that there be stability through the transition of the change in ownership.
Peters said she doesn’t have a timeline for the renovations, which remain in the planning and permitting stages. She said the Hard Rock name will no longer be used in any fashion.
“It’s our goal to keep the property open and do it in phases,” Peters said. “That would allow us to keep property operational.”
The Commission asked about an ongoing investigation over the use of dice at the Golden Nugget Atlantic City, but Peters said she didn’t have any update to provide. Vermeys said she would get that information and submit it.
In May, a New York court called on regulators in New Jersey to investigate a claim by a gambler that dice used at the property were altered. The gambler lost more than $450,000 playing craps in 2018 and 2019 and owed the property another $200,000, according to news accounts. The gambler argued he shouldn’t have to pay, because he was cheated.
The Lake Tahoe property will add to Fertitta’s list of casinos in Nevada, including the Golden Nugget in downtown Las Vegas and in Laughlin. He also plans a resort on the Strip in the future.
The Golden Nugget brand covers casinos in Louisiana, Atlantic City, Mississippi, and Illinois. Fertitta Entertainment is also converting the Wildwood Casino in Cripple Creek, Colorado into a Golden Nugget.
The Golden Nugget falls under Fertitta Entertainment, whose subsidiaries also own the Landry’s restaurant chain and the Houston Rockets.
