The San Manuel Band of Mission Indians and the San Manuel Gaming and Hospitality Authority has acquired for a reported US$650 million in cash the 700-room, 19-year-old Palms Casino Resort property off the strip in Las Vegas from Red Rock Resorts.
The still-shuttered resort (due to the pandemic) would reopen contingent on the tribe receiving a Nevada gaming license after the deal closes, which is expected later this year.
It will become the second tribal enterprise to enter the Las Vegas market this year with Mohegan Gaming and Entertainment operating the casino at Virgin Hotels Las Vegas, which opened in March.
Milbank LLP represented Red Rock and Deutsche Bank Securities Inc. is acting as financial advisor to Red Rock on the transaction. Latham & Watkins LLP represented San Manuel and Jefferies LLC is acting as financial advisor to San Manuel on the transaction.
For years, the Tribe has demonstrated an interest in and supported the Las Vegas community through contributions to non-profits and Las Vegas institutions including UNLV’s William F. Harrah College of Hospitality and William S. Boyd School of Law, the Public Education Foundation and Shade Tree Shelter, plus partnerships with the Las Vegas Raiders and Allegiant Stadium, and the Vegas Golden Knights.
Red Rock Resorts, the parent company of Station Casinos, bought the Palms from the Maloof family in 2016 for US$312.5 million.