Do you recall how during the summer it appeared that the floundering SLS casino in Nevada had been given a second chance?
It appears the conditions of that lease are yet to be finalized. Consequently, the prospective sale of the former Sahara may not proceed after all.
Sales talk for the casino slowed last month
The initial indication of issues surfaced the previous month. The Las Vegas Review-Journal reported that discussions on the specifics of the sale were stretching beyond the anticipated timeframe.
The Meruelo Group, a Reno-based casino company, declared in May that they would be purchasing SLS. However, the announcement did not include the purchase price. It was expected that the deal would be finalized by the end of the third quarter.
It goes without saying, that didn’t occur. Andrew Diss from Meruelo’s stated to the LVRJ at that time that the deal just needed to work out a few minor details. The publication hypothesized that these details might relate to a payout structure for the casino’s debt holders.
“He explained that the financing has already been fully arranged at this point. We are simply awaiting approval from the Gaming Control Board,” he clarified.
The goal of the new timeline was to transfer the property early in 2018.
Vital Vegas whispers SLS deal could be off completely
Vital Vegas, a reporting group specializing in Vegas-based business rumors, further stirred the pot today. The outlet Tweeted speculation that the SLS deal has been entirely called off.
Surprise of the day: Our previous reports that the SLS sale was delayed might have been overoptimistic. It seems the Meruelo negotiation team, including the CEO, have cancelled their planned meeting and the deal appears to be off for the time being.
From Vital Vegas, posted on November 28, 2017.
Thus far, no other media outlet has confirmed the rumor. However, it should be noted that Vital Vegas, the site that first reported the deal, is worth mentioning.
Should that indeed be the case, the SLS could face financial difficulties.
Developers of SLS invested $400 million in the acquisition of Sahara Casino, and subsequently spent an additional $415 million on renovations.
The company had last publicly disclosed its financial details in September 2015, revealing $584 million in long-term debt. Additionally, it had not yet managed to operate profitably.
The casino, at the start of the year, hired executives from Aliante Casino with the intention of marketing SLS to local players. However, their tenure at the company was short-lived as they both resigned in July of the same year. This marked the third change in leadership at SLS since its inception in 2014.
The rumor is still just that, a rumor for now. However, there’s no disputing the ongoing struggles of SLS. Furthermore, the imminent surge of new casino projects at the north end of the Las Vegas Strip is set to significantly intensify the competition for customers.
