The sale of the Golden Nugget properties in Laughlin and Freemont Street in Downtown Las Vegas has been approved by the Nevada Gaming Control Board. The Poster Financial Group Inc. previously acquired the two casinos in June 2003 from MGM Mirage and is now selling to Houston-based Landry’s Restaurant Inc. for US$140 million and US$155 million in assumed debt. Landry’s is a newcomer to the gaming industry but its Chairman and President, Tilman Fertitta, is a cousin of Frank and Lorenzo Fertita of Station Casinos.

An immediate renovation of the Golden Nugget Las Vegas is on the cards and Landry’s Gaming intends to expand the property next year to the tune of US$200 million. One of the conditions for the Gaming Board approval is that an application for the position of General Manager or COO must be filed within 60 days. The Golden Nugget, built in 1946, is the largest casino property in Downtown Las Vegas but performance has suffered since Poster’s policy of attracting the high rollers did not pay off. Landry’s Gaming will be marketing to the local and lower stakes players, which could include taking advantage for the present fashion for penny slots.

Landry’s Restaurants last year had revenue of US$1.2 billion and employs around 36,000 people at its hotel operations, aquarium developments and famous restaurant chains. An expansion into gaming would seem a logical progression for this company although, as they say, the proof of the pudding is in the eating. Other Nevada projects still in the mixing bowl are the Hooters Casino Resort and the relaunch of the Aladdin as a Planet Hollywood casino. (E-09.28.05)

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