FERTITTA-OWNED STATION CASINOS IS SUFFERING FROM DOWN ECONOMY

Posted on | November 28, 2008 | 2 Comments

Life can be brutal in the desert.

Station Casinos, which is partially owned by the 90% Zuffa, LLC Owning Fertitta Brothers (Lorenzo and Frank III), is suffering tough economic times as an entity. Before I explain further, it’s important to understand what Station Casinos really is, in their own words:

“Station Casinos, Inc. is the leading provider of gaming and entertainment to the residents of Las Vegas, Nevada. Station’s properties are regional entertainment destinations and include various amenities, including numerous restaurants, entertainment venues, movie theaters, bowling and convention/banquet space, as well as traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering. Station owns and operates Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Texas Station Gambling Hall & Hotel, Sunset Station Hotel & Casino, Santa Fe Station Hotel & Casino, Red Rock Casino Resort Spa, Fiesta Rancho Casino Hotel, Fiesta Henderson Casino Hotel, Wild Wild West Gambling Hall & Hotel, Wildfire Casino Rancho, Wildfire Casino Boulder, formerly known as Magic Star Casino, Gold Rush Casino and Lake Mead Casino. Station also owns a 50% interest in Green Valley Ranch Station Casino, Aliante Station Casino & Hotel, Barley’s Casino & Brewing Company, The Greens and Renata’s Casino in Henderson, Nevada and a 6.7% interest in the joint venture that owns the Palms Casino Resort in Las Vegas, Nevada. In addition, Station manages Thunder Valley Casino near Sacramento, California on behalf of the United Auburn Indian Community.”

The business model may be just as broken as the national economy, dependent on the airs of excess and the willingness of every average Vegas visitor to let a little ride on luck. Looks like those jet setters are cutting back on their City of Sin junkets of late, looking for the cheap deals in the strip proper rather than straying to the posh, overbuilt, more modern and lavish quarters and suburban style of the newest Station Casinos developments. Maybe that’s why they have to reconfigure their whole financing picture:

Station Casinos, Inc. Announces Private Exchange Offers of Its Debt Securities for New Secured Term Loans

Station Casinos downgraded after seeking debt exchange

Station Casino owners consider cash infusion

Obviously, the government isn’t ever going to step in and bail out the casino industry. This a business niche that has been notorious for supporting and being directed and fueled by organized crime interests. Hence the following scene from the movie Casino:

Maybe there’s some screaming matches like that going on behind the scenes in Vegas still today. Personally, I don’t believe the kind of Fertitta family ties to organized crime ever just go away. I’m convinced that the phrase “clean money” has been used far too liberally to describe the successful income generating strategies of the brothers Fertitta.

Things are about to get interesting in Xyience’s adversary proceeding against me in bankruptcy, as there is little time left for the opposition to make up facts to absolve themselves of responsibility for filing and pressing the frivolous claim that this whole saga began with. Xyience’s frivolous case against me was meant as a method to silence me so the folks wanting to steal the company from the shareholders could get away with it. Now they almost have been able to ride off into the sunset unscathed, but I still have time to go the extra mile and fight for those interests who have been drowned out thus far in all this.