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Palms Hotel-Casino Gets Final Regulatory Approval

LAS VEGAS — The $268 million Palms cleared its final regulatory hurdle Wednesday when the Nevada Gaming Commission voted 4-0 to license the 42-story, 455-room hotel-casino.

The privately developed Flamingo Road property of casino operator George Maloof and his family is slated to open Nov. 15, targeting both locals and tourists with what Maloof characterized as an exciting and hip venue.

Maloof said he is not concerned about opening the property in the midst of the dramatic downturn in worldwide travel that resulted from the Sept. 11 terrorist attacks in the Northeast.

"As the confidence of the consumer comes back, and it will come back, this city is positioned to regain all of the lost business," he said.

But McDonald Investments casino industry analyst Dennis Forst said Maloof will be challenged by the city's economic slowdown, which has seen as many as 10,000 casino workers lose their jobs to layoffs and tens of thousands of others have their work hours cut, as the stock market value of some major gaming companies has plunged by nearly 40 percent.

"He has to face embedded competition," Forst said. "The Hard Rock, the Rio, Mandalay Bay all have loyal customer bases, while Maloof has to start from ground zero. That pressure's multiplied by the current environment, because all the operators will be aggressively marketing in an attempt to fill rooms."

The Palms personnel office has received thousands of phone calls from casino workers laid off in the ongoing wave of job cuts. But Maloof said he has hired all but 300 of the 2,500 employees needed for the opening.

"The recent layoffs have been devastating, and ... I've had quite a few call me, people I've known from other properties," he said. "There's some desperation, but I've had to explain to a number of them that we just don't have positions. I feel for these people."

Casino industry observers expect the Palms to compete for business with the nearby Rio, as well as Mandalay Bay and the Hard Rock.

"It's a great feeling to have the opportunity to get back into the industry," said the 37-year-old Maloof, who in January sold the Fiesta to Station Casinos for $185 million.

Maloof answered commissioners' questions after presenting the panel with a 10-minute video presentation showcasing the Palms' amenities. Maloof and his family own 88 percent of the Flamingo Road project, and used a large portion of the proceeds from the Fiesta sale to finance the Palms. Station Casinos and a subsidiary of a local real estate developer American Nevada Corp. split the remaining 12 percent stake.

"These three families are families dedicated to building things," Commissioner Arthur Marshall said.

The Fertitta family runs Las Vegas locals gaming giant Station Casinos and controls most of their company's publicly traded stock. The Greenspun family owns the Las Vegas Sun and operates American Nevada, the privately held developer of Henderson's Green Valley community.

The commission meeting was led by Sue Wagner, the panel's vice chairwoman, who is a former Nevada lieutenant governor.

Gov. Kenny Guinn has yet to name someone to lead the commission after former Chairman Brian Sandoval resigned his position two months ago to consider whether to run for Nevada attorney general.

Wagner opened the meeting with a moment of silence to honor the Sept. 11 victims.

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