Visitreno

[JD]

Well this isn't good.

From The Reno Gazette Journal 8:16 PM, Feb. 8, 2012:

http://www.rgj.com/article/20120208/NEWS/120208025/Silver-Legacy-Reno-owes-142-8M-March-1?odyssey=tab|topnews|text|FRONTPAGE

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The partnership that owns the Silver Legacy Resort Casino in downtown Reno is working with outside advisers to restructure $142.8 million in mortgage notes due March 1, according to a filing this week with the Securities and Exchange Commission.

If that effort is not successful, its auditor has “substantial doubt” about the company’s ability to continue as a going concern, according to the filing Tuesday.

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Well I guess when you borrow money at 10%...

So you think YOUR house has dropped some in value?

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The Silver Legacy is the largest hotel-casino covering two blocks in downtown Reno. It opened in 1995 with 1,700 rooms and a giant dome over the casino. It’s opening coincided with the 1994 opening of the National Bowling Stadium in downtown Reno.

The property was valued at $320 million when it first opened, according to records. The Washoe County Assessor listed the property’s current taxable value at $98 million.

[BC Dave]

Whoa! That is definitely not good!

[Crapsjunkie]

Still ticks me off seeing what the wizards of smart have to done to the greatest gambling city in America. I know there was talk for years about doing this and that. Turning the Downtown Area in to walking mall never got off the ground. I always thought turning Reno into Country Western Branson Ms. was a great idea. But Reno pretty much just decided to become stagnant.

I never much liked the Silver Legacy much, but the Comedy Club could be a lot of fun. Hope they get their Act together and keep those people employed.

[JD]

While it's easy to see what they might have done differently, the fact is "gambling" is all over the U.S. now.

Jimmy Durante used to say, "Everybody wants to get in on the act."

Once upon a time, you had to go to Nevada to play craps, now every state has Indian casinos, state lotteries, video slots & VP , and all kinds of sucker games.

If YOU bought a house in 1995 for $ 320,000 and seventeen years later it was only worth $ 98,000 and you still owed $ 169,000 and a $ 143,000 Balloon payment in THREE WEEKS with a 10% mortgage you couldn't refinance because you had NO INCOME (actually LOST $ 7k/year ave.) FOR THE PAST 3 YEARS !!!, ...WHAT WOULD YOU DO? WHAT CAN YOU DO ? Add three zeros and you see the problem.

Early American settlers might have "bought" New York from the Indians for $ 42 worth of beads....but they are getting it back a quarter at a time.



"The SEC filings show the Silver Legacy owners operated at a loss of $9.5 million in 2010, following losses of $4.7 million in ‘09 and $8.7 million in 2008."

http://www.rgj.com/article/20120209/NEWS/120209029/Experts-Silver-Legacy-Reno-unlikely-close?odyssey=tab|topnews|text|FRONTPAGE

[BC Dave]

Though I am guilty of visiting the "competition" in Washington State. I'm going to ease my conscience in the near future. I'm booked into the Silver Legacy. I can't loose enough to make much of a dent in their debt but I'll try to confine my winning streaks to places that'll never close. (Like the Cal-Neva).

I'm sure you all agree that those "other" casinos can't hold a candle to what Reno's casinos offer. Free drinks, dazzling casinos, really cheap (if not free) hotel rooms, fantastic food at great prices ......the list goes on. The only advantage the Indian casinos have is the short drive.

My upcoming trip is for 4 nights at the S.L. The price is $267. That's airfare included! Try staying more than two nights at an Indian casino for that amount.

I wish the RSCVA would advertise this kind of thing nationally.

[mjames1229]

[JD]

Not to stray too far away from SL's problems but....

The flight from Portland to Reno is 1hr, 15 minutes.
But it's 5 1/2 hours of screwing around...maybe more.

Years ago, (before 9/11) I bought a dozen S.W. R/T tickets when they were on sale. Back then, you didn't have to show ID to board.

Today, I'd rather eat a cereal bowl full of ground glass than go thru the hassle of that 6 hour trip which I can DRIVE in 9....and have my car when I get there.

But flying hassles and gas prices are just one more nail contributing to the death spiral of the entire RENO business model.

Gaming is no longer a forbidden fruit...it can be had at every 7/11 in Oregon.

I don't much care for Indian casinos...and hate state gaming...it's for suckers.

So I'll still go. I'll play hard, (can't quite drink like I used to), and tip.


BUT I'M JUST ONE MAN.

And Lord knows, not too many people think like me.



But you cannot run a business in the red for years, with decreasing real estate equity, and a HIGH carry cost (10% mortgage), a huge balloon coming due soon, no foreseeable reason why the losses will reverse, and a local government that looks to the casino as the golden goose, for ever.

[BC Dave]

Mjames, I realize I got an exceptional deal. It was thru SW and I think I discovered a little known feature of their website. The price is nearly the same as I paid back in 1985.

JD, I know getting there is going to be a hassle - customs, security, hanging around the airport for 2 hours, but once I'm checked into my room I won't need to give a damn for almost 5 days. (Unless the S.L. actually closes.)

I've done the drive too. For me it's a minimum of 16 hours- usually more like 18.

And J.D. I agree with you too about Reno's prospects. They're not good - for all the reasons you listed.

And I concur with your estimate of Indian Casinos. The Washington State slots don't even use RNGs. They look like the Nevada machines but they are not the same at all. http://robison.casinocitytimes.com/articles/32165.html

So why do my wife and I go to one. Well it's a night out. We can kinda pretend we're in Nevada.

We have government run (privately contracted) casinos here in B.C. They all lack character. They seem to lack winners too. Despite this some do an amazing business. These are people that used to have to go to Nevada for their gambling thrills.

I once had a conversation with John in which I suggested that Reno needs something that's as politically incorrect as gambling once was. Something the rest of the country wouldn't care to copy. Topless cocktail waitresses or something like that. However even that wouldn't attract the huge crowds that Reno once enjoyed. (In fact it would probably turn off the little old blue haired ladies who still go there).

However I still think that if what Reno does have to offer were brought to the travelling public's attention then maybe a few more folks would VisitReno.

Sorry this kind of a rambling (stream of consciousness) post. It's late, and the only thing I do well at this hour is play video poker. (At least I think I do.)

[Crapsjunkie]

When the first one here in Oregon opened they positioned the place as the Un-Las Vegas. Boring, Boring, Boring! Finally they have come around and decided they would like to be more like Las Vegas. The Slot are just horrid and Bill eating monsters. My guess is they are retaining about 30%. Very few people ever win and the word on the streets is NO BODY Wins. I suppose it will continue that way until there is some major competition.

The Buffet is probably the best in Oregon but not cheap. Other Restaurants are Ok, and again not cheap.

I believe most people go to a Casino for Entertainment and something very different than their daily life. They want to be excited and entertained. However they don't enjoy be down right screwed without even a kiss.

If they didn't have a Craps Table or two and would never cross their Door Step.

I am planning a Trip to Reno in April for some Birthdays. Then we will likely head to Laughlin and Las Vegas. Laughlin reminds me more of Reno where the Rooms are cheap and food almost given away. Vegas gives us a chance to see some Great Shows.

[JD]

In keeping with the SL death watch....it brings me no pleasure to share this from the current Reno paper:

"The Silver Legacy Resort Casino failed in its efforts to restructure $142.8 million in mortgage note due March 1 through a public offering, according to filings this week with the Securities and Exchange Commission."

"Circus and Eldorado Joint Venture, owner of the 1,700-room hotel-casino, also said Monday that the partnership is “pursuing other sources of financing” related to its initial SEC filing on Feb. 6 to restructure its debt or, according to its auditor, face possible foreclosure or seek bankruptcy protection."

"The Silver Legacy’s owners are still in refinancing talks, Lepori said, adding, “There are differing financing alternatives, and we’re in discussions with existing noteholders.”

"The original SEC filing stated that if the Silver Legacy fails to restructure its debt, its auditor has “substantial doubt” about the company’s ability to continue operating the resort, which is at 35 stories Reno’s tallest structure."

http://www.rgj.com/article/20120216/BIZ04/302160057/Silver-Legacy-s-first-try-refinancing-142-8-million-debt-falls-short?odyssey=tab|topnews|text|FRONTPAGE

[BC Dave]

Jeez, I never would have suspected the Silver Legacy would be next to (possibly) go. But when you think about it - It's a big property with lots of employees and upkeep and other expenses.

Sure would be a BIG black eye for Reno.

It's also my destination in a short while. A lot of good my bargain priced Southwest trip is going to do me if the hotel is no more.

Here's wishing the place some luck over the next two weeks!

[JD]

Oh...I'm sure SOMETHING will survive. With any luck, they'll save expenses by cutting back on all that fabric in the cocktail waitresses outfits.

Like the players' club cards....they can always change the name to "GOLD LEGACY" and if that fails, "PLATINUM LEGACY", "MOLYDENUM....etc."

Speaking of cards... POOF !! Wanna see some card points disappear?

"Visit the SL players club booth for the NEW AND IMPROVED PLAYERS CLUB CARD...."

When you goin? I expect to be there March 10-20 or so.

And if I hit the BIG BIG one, I don't think I'll go for the 20 year payout.

[john]

The Silver Legacy has been a long time major sponsor of Street Vibrations. When the owner of SV read the article in the Reno Gazette Urinal, he called Gary Carano to see it he planned on continuing the sponsorship. Carano have him the impression that the article was overblown and he would continue to sponsor the event.

On a brighter note, BC Dave will be here in about 10 days. Charlie and Higgins are sharpening their beaks in anticipation.

[JD]

John:

Maybe YOU should start another thread on effects the Seenos/Whittlemore lawsuits and arrests might have on the Peppermill's gaming license.

Anyone curious about the owners of the Peppermill and THEIR problems, can find the smut in the RGJ as well.

Search: Seeno, Seenos Construction, Whittlemore or Peppermill.

http://www.rgj.com/interactive/article/20120212/NEWS/120212001/Interactive-timeline-Seeno-Whittemore-lawsuits

[BC Dave]

If the slots don't eat me alive, the birds will. Can't wait!