Monarch Casino Shifts Focus to Reno Atlantis Following Colorado Splurge

Monarch Casino Shifts Focus to Reno Atlantis Following Colorado Splurge.

Costfoto / NurPhoto / Getty Images

Key Takeaways

After shelling out $400 million to enhance its namesake venue in Black Hawk, Colo., Monarch Casino Resort (NASDAQ:MCRI) is turning its attention back to the Atlantis Casino Resort Spa the operator’s venue in its home market of Reno.

Monarch CasinoMonarch Casino s Atlantis in Reno. The company is renovating that venue to attract more affluent patrons. (Image: YouTube)

While there obvious benefits to Monarch’s Colorado expenditures, including a fast-growing population , there are potential perks to reasserting itself in Reno, too. The operator is close to completing refurbishments on the 27-floor Concierge Tower at Atlantis a move aimed at attracting a more affluent clientele. Investments in Reno could pay off for Monarch, because some analysts see resilience in the northern Nevada gaming hub.

We expect MCRI s Atlantis property proved more resilient than contemplated through February, with initial March data suggesting an improving regional gaming consumer post-Omicron,” said Stifel analyst Jeffrey Stantial in a recent note.

He rates Monarch shares a “buy,” with a $96 price target, up from $91. Up 17.57% year-to-date, the stock is easily one of the best-performing domestic gaming equities in 2022.

For Monarch, Reno Allure

While the Reno/Lake Tahoe/Sparks market lacks the glitz and revenue heft of Las Vegas, the former still offers attractive points for operators.

Those include a growing population and companies opening new offices in the region. Recent headlines suggest . Circa Sports is opening a retail sportsbook in Sparks in a few months, and Century Casinos (NASDAQ:CNTY) said in February it’s to enter Nevada.

Monarch CEO John Farahi tells the Reno Gazette-Journal that Reno is an increasingly “sophisticated” market that warrants higher-end offerings. Along those lines, the company is refurbishing Atlantis’ first tower, which is more than three decades old.

Currently, Monarch owns just Atlantis and the aforementioned Colorado venue the latter of which is the more profitable of the pair. However, the  company is consistently mentioned as a potential player in regional casino consolidation activity.

More Reno Catalysts

Reno is a market with potential catalysts, including the return of convention business and more gamblers in the coveted 55+ age demographic returning to casinos following the pandemic.

“In Reno-Sparks, we believe market-wide performance proved more resilient through Omicron than expected, with February GGR up a considerable +35% vs. 2/2019. While Nevada has yet to report March figures, we expect demand likely remained robust with the broader U.S. regional market accelerating into March,” adds Stifel’s Stantial.

That complements strength in Colorado, where Stantial sees Monarch potentially raising first-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) estimates by 8%, and that’s with full-scale marketing efforts that are just two months old.

Article Sources
Japan Casino Regulatory Commission Needs More Money, Seeks Budget Increase editorial policy.
  1. Pennzoil 400 NASCAR Race Revs Up Las Vegas Economy, Generates $166M Impact

Compare Accounts
×
Drew Las Vegas Contractors Claim They’re Owed $36 Million
Provider
Name
Description
DC Lottery Sports Betting Regulations Propose Provisional Licenses for Experienced Operators  Ben Affleck Reportedly Spotted at Monte Carlo Casino During European Getaway  The Cordish Companies Funding Norfolk Casino Opposition, Threatens Lawsuit  Donald Trump Conviction Odds Lengthen, as Dems Argue He Triggered Supporters  Hard Rock Casino Workers in Atlantic City and Florida Receive Cash Bonuses  Crown Melbourne Casino Could Ban Indoor Smoking  Adele Crushes Gaga for Las Vegas Gross Per Show — Report  MGM Osaka Financing Secured, Multibillion-Dollar Loan Historic in Japan  Nebraska Sports Betting Appears Years Away  Prosecutors Investigate French Open Doubles Match for Fixing After Receiving Alert