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Nevada Officials Heed Station Casino's Power

LAS VEGAS --The power of Station Casinos' Sacramento, Calif.-area tribal casino isn't lost on the Nevada Gaming Commission, which held its monthly meeting Thursday in Las Vegas.

Thunder Valley Casino, the United Auburn Indian Community's Las Vegas locals-style gambling operation, will generate an estimated $65 million to $75 million in first-year management fees for Station, the company announced Wednesday.

The projection implies yearly property cash flow of $275 million to $300 million, which, if correct, would make Thunder Valley a bigger cash-flow producer than all Nevada megaresorts save Bellagio.

Northern Nevadans worried about the impact of Thunder Valley on Reno and Lake Tahoe casinos have sympathetic ears on the commission, but the panel members admitted that the Station-operated property would likely hurt the market's casinos, at least in the short run.

"(Thunder Valley) is the new kid on the block, and it's going to get (a lot of business)," commission member Art Marshall said during a meeting break. "I hope that Reno can continue (evolving) into more of a resort destination."

Panel member Augie Gurrola struck a similarly optimistic tone, suggesting that a quality casino gambling experience, California-style, would make people more likely to visit Nevada casinos.

"Thunder Valley gives Californians an opportunity to gamble without traveling," Gurrola said. "But it should whet their appetites and maybe get some neophytes to sample the big time in Reno, Lake Tahoe and Las Vegas."

Former Lt. Governor Sue Wagner, the only Northern Nevadan on the commission and a constant booster of her region's interests, said she wasn't surprised by the apparent resounding success of Thunder Valley.

"Many people in Northern Nevada thought this could happen," Wagner said. "When I chaired the tourism commission 12 years ago, I realized it would hurt Nevada if California (gambling) took off."

She noted two developments that could limit Thunder Valley's expected hit on Northern Nevada tourist and gaming revenue.

One, Reno needs to re-emphasize its proximity to the great outdoors, to the mountains and to the Truckee River.

Two, locals casino operators like Station should consider building in the Reno area, she said.

"Reno's growing at 3 to 4 percent a year," she enthused. "Outside of Las Vegas, that would be great. I'm encouraged by the prospective growth for Reno locals properties."

Station Casinos Chief Financial Officer Glenn Christenson said his company has checked out the Reno market.

"We have looked at Reno and continue to look at opportunities in Reno," Christenson said. "But if I were an operator in Reno, I wouldn't want us up there."

Station's current focus is on development opportunities in Las Vegas, beginning with its planned Red Rock Station project in Summerlin, and on tribal casino management opportunities, in California and elsewhere, he said.

In Thursday action, the commission voted 3-0 to approve slot bar king Terry Caudill's $20.5 million purchase of downtown's Four Queens hotel-casino.

The change of ownership is slated to take place by the end of the month.

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