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Best of Chris Sieroty

Gaming Guru

Chris Sieroty
 

Fifth Street Gaming to take over operations at Gold Spike, Siegel Slots & Suites

28 August 2012

LAS VEGAS -- Fifth Street Gaming said Monday it has reached an agreement to take over gaming operations at two of The Siegel Group Nevada, Inc. properties, including the Gold Spike Hotel & Casino, in a deal that expands the company's presence in downtown Las Vegas.

The Las Vegas-based casino management company will also manage casino operations at Siegel Slots and Suites in North Las Vegas.

"The management of casino operations at Gold Spike is a natural evolution for us," Fifth Street CEO Seth Schorr said. "The property will be absorbed into Downtown3rd, and we have already made a significant investment to upgrade technology, and ultimately, the experience at Gold Spike."

Terms of the deals, which must be approved by Nevada gaming regulators, were not disclosed.

Fifth Street is overseeing the redevelopment of the Downtown Grand, the former Lady Luck, and development of Downtown3rd, a walkable district of retail, dining and entertainment outlets. The company expects the Downtown Grand to open in late 2013 with 600 slot machines, 35 table games and 650 employees.

The privately owned district will eventually include 18 bars and restaurants on Third Street between Stewart and Ogden avenues, according to Fifth Street.

The Gold Spike has struggled for several years even though it was renovated in 2008. Schorr said he expects the "addition of new games will go a long way in helping to truly turn around the property."

The Siegel Group spent nearly $30 million to acquire and renovate the Gold Spike in early 2008. The 1.5-acre property, which sits at the east end of the Downtown3rd project on the corner of Las Vegas Boulevard and Ogden Avenue, includes 162 rooms, a restaurant, pool and a 15,000-square-foot casino.

Fifth Street also picked up its fourth locals casino in North Las Vegas.

"We are excited to be joining forces with Fifth Street Gaming at our two casino properties," said Michael Crandall, senior vice president of The Siegel Group in a statement. The Siegel Group, with offices in Las Vegas and Los Angeles, owns several boutique hotels, apartment complexes and other commercial developments.

"Siegel Slots and Suites is a perfect addition to our North Las Vegas casino company," Schorr said. The Siegel Group purchased the Barcelona Hotel and Casino for approximately $14 million in 2008 and rebranded the property Siegel Slots and Suites.

"We've spent a lot of time in North Las Vegas," said Schorr, who owns Fifth Street with his partner Jeffrey Fine. "We think the future is bright. In 12 to 24 months, I believe North Las Vegas will be in a much better place than it is now."

Fifth Street operates the Lucky Club, Silver Nugget Casino, Opera House casino in North Las Vegas and the Little Macau Ultra Tavern in Las Vegas. Combined with Gold Spike and Siegel Slots & Suites, their properties have more than 1,000 slot machines and some 400 employees.