San Manuel Band of Mission Indians buys Palms Casino Resort off the Las Vegas Strip for $ 650 million

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LAS VEGAS – A California tribe announced on Tuesday that it will purchase the Palms Casino Resort off the Las Vegas Strip.

The San Manuel Band of Mission Indians is expected to acquire the 700-room Palms for $ 650 million from Red Rock Resorts later this year, the Las Vegas Review-Journal reported. This will be the second tribal business to enter the Las Vegas market this year; Mohegan Gaming and Entertainment opened a casino at Virgin Hotels Las Vegas in March.

“Today marks an important milestone for the tribe and its long-term economic diversification strategy,” San Manuel President Ken Ramirez said in a press release. “On behalf of the tribe, we are grateful for the opportunity to join a community we know and appreciate.”

The tribe has recently made several donations to organizations in Nevada, including a $ 9 million contribution to the University of Nevada, the William F. Harrah College of Hospitality in Las Vegas, and the William S. Boyd School of Law for support tribal gaming operations and legal education.

The tribe operates its flagship San Manuel casino in Highland, California, as well as several hotels across California and an office building in Washington, DC.

Red Rock Resorts Inc. bought the Palms in 2016 for $ 312.5 million and invested more than $ 620 million in renovations, the Las Vegas Sun reported. The casino-resort has been closed since March 2020, when the coronavirus pandemic shut down gambling businesses.

“The purchase price is less than RRR’s total investment of nearly (tilde) $ 1 billion, but we believe (Wall) Street has largely written off the property given the recent underperformance and poor performance. COVID-related shutdown, “Gambling industry analyst Barry Jonas told investors on Tuesday.

The transaction is subject to regulatory approval by the Nevada Gaming Commission.

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