Station Casinos Las Vegas
Major companies’ buying up casino properties is not unusual. Gambling is a very lucrative business, especially in Las Vegas. Even with the Vegas strip being overpopulated by resorts and casinos, there is always room for more gambling hubs.
However, the decision by Station Casinos to purchase “The Showboat”, a casino that ran from 1954 to 2000, was seen as an unusual piece of business. The area they bought was a massive building, which could fit 450 rooms and had over 85,000 square feet of gambling space. Why is buying such a spot considered unusual? The answer lies in the state of the property. Most experts believe that this building is unusual. There is too much damage to the main site, with the only viable solution being to tear it down and build something else on that spot.
That begs the question, why did Station Casinos buy the property? They bought it because of an unusual loophole in Las Vegas casino regulations. It has to do with getting a gaming license to operate a Vegas casino. Despite companies having enough money to buy multimillion dollar properties, tear them down, and build new casinos on those sites, they cannot get a gaming license whenever they want. It can take years to get a license, with gaming authority being within their rights to say no. Vegas gaming licenses are eligible for two years after the last date when the casino was run.
When Station Casinos bought The Showboat, they were buying the license, not the property. After buying the property in 2004, they destroyed the casino site completely and were left with a completely barren area of land. Within the two year period, they set up a small trailer that held a few slot machines and one or two table games. This ensured they were running a casino, which meant the license they bought could be pushed forward for, another two years.
They have still not started construction on a new casino, but they continue to roll out the trailer whenever they want to renew a license that they paid millions of dollars for.
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