San Manuel enters agreement to purchase Palms Casino

The San Manuel Band of Mission Indians is purchasing the struggling PALMS Hotel and Casino in Las Vegas. Red Rock Resorts is selling the Palms to the San Manuel tribe for $650 million.  The deal was announced Tuesday.  The purchase takes the San Manuel Tribe into the heart of the mecca of the gaming industry.

The Palms property has struggled for years.  The Maloof Family owned the property for many years and were unsuccessful at making it a consistently profitable venture to say the least. Their strategy at the time was to attract local gamblers, diners and those seeking entertainment while also bringing in weekend travelers. That strategy failed. “The reality is it was never a local casino,” said Heidi Harris a Las Vegas radio host.  “They tried to present themselves that way but they were just as dependent on tourism as everybody else on the strip.  The database of customers that San Manuel has of people they can draw to the property will hopefully make it quickly successful.”

San Manuel will likely use its existing core of customers, who are not that far away from the Las Vegas Palms, and try to attract them to the casino with offers that combine more amenities, such as larger rooms and suites, entertainment and dining options.

“Today represents an important step for the tribe and its long-term economic diversification strategy,” San Manuel Chairman Ken Ramirez said in a release announcing the transaction. “On behalf of the tribe, we are thankful for the opportunity to join a community that we have come to know and appreciate.”

Red Rock Resorts in the last few years paid approximately 700 million dollars to renovate the 700-room, 19-year-old property.

San Manuel is  the second tribal enterprise to enter the Las Vegas market this year after Mohegan Gaming and Entertainment, operators of the casino at Virgin Hotels Las Vegas, which opened in March.

“The Palms is a well-designed property which has been beautifully redeveloped and maintained by Red Rock Resorts,” San Manuel Gaming and Hospitality Authority Chairwoman Latisha Casas said in an emailed release. “Our board believes that the Palms is a casino resort that many of San Manuel Casino’s loyal guests would enjoy. We are excited to move forward with this transaction.”

The San Manuel Tribe has existing sponsorships with the local hockey franchise Vegas Golden Knights, Allegiant Stadium and the NFL Raiders. Over the past four months, the tribe has donated $250,000 across several local Las Vegas non-profit organizations.

The deal is subject to regulatory approvals.