Palms sale

[kewlJ]

So I have been thinking about the Palms sale since the rumor broke yesterday at VitalVegas. Some of the rumors pan out and others don't. But it was no secret Palms was for sale, even before covid. Never quite got what Stations plan was with Palms. They purchased it for 312 million and sank another 690 million in renovations. So they are into it for a billion dollars. If they really are going to be selling for close to 900 million, I think they are extremely lucky to be getting most of their investment back.

So the rumor is that it is not any casino or company already in the Vegas market. And it is not a REIT, which some of the big casino chains are now. So that got me thinking, who? There has been a rumor for a while that Hard Rock Seminole (separate from the previous Vegas Hard Rock) wants a casino ON the strip. The location talked about was the Tropicana, but that just sold to someone else. So might they be interested in a property just off the strip instead?

Any other players (casinos) not in Vegas that are rumored to be interested? I personally am not as familiar with companies outside of the Vegas Market.

[redietz]

I never understood the Stations' plan for the Palms. They completely redesigned the interior in the hope of what? That a casino offstrip would be mistaken for a casino on strip? And they blew up the original hybrid business model, which was locals joint on weekdays and youthful party place on weekends.

I've heard the same rumors as you. If the Bally's thing falls through, Hard Rock may be interested in the Palms.

[jpfromla]

So I have been thinking about the Palms sale since the rumor broke yesterday at VitalVegas. Some of the rumors pan out and others don't. But it was no secret Palms was for sale, even before covid. Never quite got what Stations plan was with Palms. They purchased it for 312 million and sank another 690 million in renovations. So they are into it for a billion dollars. If they really are going to be selling for close to 900 million, I think they are extremely lucky to be getting most of their investment back.

So the rumor is that it is not any casino or company already in the Vegas market. And it is not a REIT, which some of the big casino chains are now. So that got me thinking, who? There has been a rumor for a while that Hard Rock Seminole (separate from the previous Vegas Hard Rock) wants a casino ON the strip. The location talked about was the Tropicana, but that just sold to someone else. So might they be interested in a property just off the strip instead?

Any other players (casinos) not in Vegas that are rumored to be interested? I personally am not as familiar with companies outside of the Vegas Market.

The renovations costs were closer to $900 billion by the time they were done.

[monet]

I never understood the Stations' plan for the Palms. They completely redesigned the interior in the hope of what? That a casino offstrip would be mistaken for a casino on strip? And they blew up the original hybrid business model, which was locals joint on weekdays and youthful party place on weekends.

I've heard the same rumors as you. If the Bally's thing falls through, Hard Rock may be interested in the Palms.

You don't understand because they are playing a game that is far above what any of us can understand.
My case in point... CET Bankrupt... CET now buying WilliamHill.
The Devil!

[AndrewG]

I never understood the Stations' plan for the Palms. They completely redesigned the interior in the hope of what? That a casino offstrip would be mistaken for a casino on strip? And they blew up the original hybrid business model, which was locals joint on weekdays and youthful party place on weekends.

I've heard the same rumors as you. If the Bally's thing falls through, Hard Rock may be interested in the Palms.

You don't understand because they are playing a game that is far above what any of us can understand.
My case in point... CET Bankrupt... CET now buying WilliamHill.
The Devil!

I thought the old CET was dead and buried and that the company that bought the bones of the dead CET just used its name?

[monet]

I thought the old CET was dead and buried and that the company that bought the bones of the dead CET just used its name?

I'm guessing you are correct.
I get fooled too.

[kewlJ]

Well it didn't take long for the answer. Indian casino from California. That will make 3 casinos run by Indian casinos all of the sudden. I guess the Indians are reclaiming the desert.

[MisterV]

Obviously the gaming authorities have no problem with sovereign nations owning casinos in Nevada.

Tribes are not corporations so far as I can tell, nor are they just one person.

So how in hell can they do a proper due diligence background check?

Do they vet / investigate ALL the members of the tribe, or just the one on the application?

[AndrewG]

The San Manuel Tribe has 200 members.

[redietz]

The San Manuel Tribe has 200 members.

Andrew, you might find this interesting. It's been a few years, but the last time I drove cross-country, I stopped in various Native American casinos and picked up whatever tribal newspapers and publications I could get my hands on. It's the old journalism major in me.

Reading some of the things being debated in a couple of the papers, what impressed me was how sovereign these sovereign nations truly are. If a tribal casino was found to be ripping people off in any of a thousand ways, as a tribal member reporter you would not be able to report this in the tribal papers. Any wrongdoing administratively or otherwise -- you are beholden to the tribal council as to what you can or cannot publish or print.

In other words, free speech is for all intents and purposes suspended on tribal lands.

Draw whatever conclusions you want from this, but you're going to witness less transparency from councils calling the casino shots than you would from La Cosa. I can't imagine actual background checks will mean anything unless somebody has been flagged for homicide.

[AndrewG]

Mr Redietz speaking of homicide...

https://www.indianz.com/News/2008/11..._sentences.asp

[redietz]

Mr Redietz speaking of homicide...

https://www.indianz.com/News/2008/11..._sentences.asp

Well, I guess a little sovereign influence works on murder-for-hire plots. Geez. That is blatantly rough stuff.

[mcap]

Mr Redietz speaking of homicide...

https://www.indianz.com/News/2008/11..._sentences.asp

Well, I guess a little sovereign influence works on murder-for-hire plots. Geez. That is blatantly rough stuff.

Well well well, look what drug the cat in.

[Tasha]

Yeah, I have heard that Tribal Casinos can be rough because they are under their OWN laws, not the Laws of the State. Some guy said he was Backroomed on the unfair suspicions of CHEATING at a table game and they physically roughed him up in that backroom and he was actually playing a fair game and he not surprisingly tried to sue the Casino but was told he couldn't sue since they were under their OWN laws and not the State Laws. He was like,"So they physically roughed me up for something I wasn't even doing and can get away with it? This is complete Bullshit. "

This seems scary to me personally....

[mcap]

Yeah, I have heard that Tribal Casinos can be rough because they are under their OWN laws, not the Laws of the State. Some guy said he was Backroomed on the unfair suspicions of CHEATING at a table game and they physically roughed him up in that backroom and he was actually playing a fair game and he not surprisingly tried to sue the Casino but was told he couldn't sue since they were under their OWN laws and not the State Laws. He was like,"So they physically roughed me up for something I wasn't even doing and can get away with it? This is complete Bullshit. "

This seems scary to me personally....

This is why you’re still a troll. And don’t insult us with any of this “how is that trolling ?” bullshit.

[kewlJ]

So it looks like the Palms sale was for $650 million, considerably less than the $900 million rumored last week. That means Stations took a pretty big hit ($400 million over 4 years) as they were in over a billion dollars with purchase and renovations. I don't know what Stations plan was or what they thought they could make that property into, but somebody really screwed up.

I though Palms had a pretty good model 7-8 years ago with the "hybrid" model that redietz mentioned. On Weekends they catered to the young, hip, California 20's and 30's crowd, and on weekdays was a full blown "local's casinos", heavy on promotions and giveaway days. Only one other casino operated that "hybrid" model that I am aware of, the other being Hard Rock. Only difference was hard Rock's weekend out of town crowd was 50 year old "rock and rollers".

Since both have been sold, Palms twice now, I guess that hybrid model wasn't financially successful.....well at least for the casinos. Some of the AP's thought it successful.