Following a successful start for Durango Casino & Resort in Southwest Las Vegas, operator Red Rock Resorts is already eyeing expansion of the venue, which opened last December. Next week, the Clark County Zoning Commission will consider a request by Red Rock to slightly adjust plans for Durango’s second phase, initially approved in October 2021. The expansion is expected to include more hotel rooms, casino space, banquet facilities, a bowling alley, and a movie theater.
Proposed Expansion Details
Red Rock Resorts aims to add a second hotel tower, potentially increasing the property’s capacity to nearly 580 rooms. The expansion plans also include more banquet space, which will cater to events and conferences, and the introduction of a bowling alley and movie theater, both common features in many Red Rock-operated venues across Las Vegas.
Parking, a premium commodity at Las Vegas gaming venues, is also a priority in the Durango expansion. Red Rock is requesting permission from the Zoning Commission to add 6,000 parking spaces across two new garages and additional outdoor space. The new casino area will be adjacent to one of the parking garages to the northwest, featuring dining space and an outdoor patio. However, no renderings of the expansion plans have been released yet.
Strategic Importance of the Expansion
One reason for opening Durango was Red Rock’s view of Southwest Las Vegas as relatively underserved in terms of credible casino options. Despite some evidence of the venue attracting business from other Red Rock properties, the operator believes this will stabilize over time. The population growth in Southwest Las Vegas far exceeds that of the city at large, and recent data indicates that Southwest has surpassed Henderson as the most affluent part of Las Vegas.
The $750 million Durango currently boasts 73,000 square feet of gaming space, a sportsbook, 2,000 gaming machines, and 40 table games. Following Durango’s first full quarter of operations, Red Rock reported that the property is on track to meet margin and return on investment objectives sooner than expected.
In addition to Durango, Red Rock operates multiple gaming properties under the Station brand throughout the Las Vegas area, including its namesake venue in Summerlin and the Green Valley Ranch in Henderson. The company also runs 10 Wildfire casinos, seven of which are in Henderson.
Economic Factors and Potential Challenges
Last month, Nevada casinos recorded a combined gross gaming revenue (GGR) of $1.32 billion, marking the industry’s best May on record. While these figures are promising, some macroeconomic issues could impact local casinos like Durango.
A recent report by the National Association of Realtors (NAR) and Redfin indicates that the median Las Vegas household needs over $61,000 to afford the average rental rate in the Valley, whereas the median income is $56,066 per year. This means only 46% of Las Vegas renters live in properties they can afford. The disparity between rent obligations and income could potentially weigh on consumer discretionary spending, including spending at casinos.
Conclusion
The proposed expansion of Durango Casino & Resort by Red Rock Resorts underscores the company’s confidence in the growth potential of Southwest Las Vegas. The planned additions of hotel rooms, casino space, and entertainment facilities aim to enhance the venue’s appeal and capacity. While economic challenges exist, the strategic expansion could position Durango as a key player in the local gaming market, catering to the region’s growing and increasingly affluent population.
