One of Reno's flashiest hotels and casinos is trying to hit the jackpot and avoid defaulting on its loans.
According to the Sacramento Bee, the owners for the Silver Legacy Resort are in talks with bondholders to restructure its more than $142 million bond. The debt payment was due earlier this month, but the owners were given several more weeks to find a solution. City leaders are confident a compromise will be found to keep 1,800 employees from losing their jobs and avoid having the 1,700 room hotel from closing its' doors.
The Silver Legacy Resort and other hotels in Reno have felt the pinch from a slumping economy and the increased presence of Indian Casinos here in California. Most notably Thunder Valley Casino Resort in Lincoln. Most Indian casinos have been successful in luring gamblers and tourists from Reno, but there have been some establishments which are having trouble staying out of the red. But it has been nothing but 'snake eyes' for Silver Legacy the past few years.
The hotel lost $9.6 million in 2010, and $4 million the first 9 months of last year. It first opened back in 1995 at a cost of $350 million.
The recession hit the gambling industry hard. Businesses in Las Vegas are starting to see increases in gambling revenue this year. It's a different story in Reno, where casinos have seen profits fall the past decade. The city is looking at other ways to boost tourism by emphasizing its' many outdoor activities including skiing.