Nevada Gold & Casino moving to Las Vegas, ending Las Vegas Motor Speedway project
Nevada Gold & Casino Inc. said Tuesday it will close its corporate office in Houston and move most of its operations to Las Vegas, a decision the gaming company expects will cut costs by more than $750,000 annually.
The company will move other corporate functions related to its casino operations in Washington state to a regional office in Seattle. Ernest East, Nevada Gold's interim president, also confirmed plans Tuesday to abandon its modest investment in a proposed hotel-casino project adjacent to the Las Vegas Motor Speedway.
The company hasn't decided how many of its 10 employees will move to Las Vegas.
"With Las Vegas as our new home, we will improve our access to acquisition opportunities and our participation in industry developments," East said in a statement. "Also, the move permits us to more fully leverage opportunities arising from our recent approval for a gaming license in the state of Nevada."
The company in January was granted its gaming license, allowing it to complete its acquisition of a minority stake in The Nugget in Reno.
Nevada Gold Chief Financial Officer Jim Kohn said in an interview Tuesday that the company maintains its 1 percent stake in The Nugget, which it purchased in February 2011 for $26,000.
"We are looking to tap opportunities in the greater Las Vegas area," Kohn said. "That includes brick and mortar casinos in the area."
Nevada Gold opened its Las Vegas business development office in 2010.
The company's subsidiary, Nevada Gold Speedway LLC, was also licensed this year. Nevada Gold had been negotiating with an affiliate of Lennar Corp., which owns property near the Petro Truck Stop off Interstate 15, for an equity stake and a management contract on a proposed hotel and casino.
The $60 million project adjacent to the Las Vegas Motor Speedway would include a 200-room hotel and 30,000-square-foot casino.
"Given the challenges of securing financing, we have decided not to make any further investment in that project," East said. "Instead, we will focus on activities that offer more immediate rewards for Nevada Gold and will write off the $215,000 investment the company had invested to date."
Nevada Gold on Tuesday also announced an agreement with NYX Gaming Group to develop a social gaming site that will launch early next year. Financial terms of the deal were not disclosed.
"The iGaming site, which will be launched in a Facebook social media platform, will enable players to play the most popular selections of poker, slots and table games for fun, while incentivizing them to visit Nevada Gold's brick-and-mortar properties," East said.
Besides its casino operations in Washington state, Nevada Gold also operates a 950-machine slot route in Deadwood, S.D., and has an interest in Buena Vista Development Co. LLC, which is working on a Native American casino project in Ione, Calif.
Contact reporter Chris Sieroty at
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