Home » VT News » Think Casino Mogul: Silver Legacy Declares Bankruptcy

Think Casino Mogul: Silver Legacy Declares Bankruptcy

By Chuckmonster on Monday, 21st May 2012 2:36pm
  » filed under Reno, Tahoe & Sparks  comments: 5

   

While in the middle of saving the world, one casino jurisdiction at a time, the great and powerful MGM's partially owned downtown Reno resort Silver Legacy has declared bankruptcy.

Silver Legacy is in possession of $143M of debt. MGM - by vanishing their investment in Silver Legacy via the mighty pen - isn't liable. That sure has got to be nice... whip out a pen and cross some liabilities off of the balance sheet.... voila!Is this what they mean by "Think Casino Mogul" ???

This is somewhat surprising, but not really. Reno has been hit hard by casino expansion in other jurisdictions over the last 10 years, compounded exponentially by the general economic disaster. Silver Legacy and its attached partners Eldorado and Circus Circus are the top joints on Virginia Street and to see the biggest, bestest, newest joint have to resort to bankruptcy restructuring isn't a good sign for the city as a whole. Silver Legacy is in such a bad state MGM didn't even roll it into M Life, something they did with Hertz, sbe and Ameristar casinos. Hrmmmm.

Will the last one out of Reno turn out the lights?



Tagged: reno   silver legacy   mgm   m life   





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Comments & Discussion:

MGM still has Circus in Reno so they're covered. But the Circus customers in Reno are below even the Vegas customers of Circus. So I guess they are writing off the Reno market, as well.

What a bummer! I had a great time at Silver Legacy and it was a cool casino with that Mining Rig thingy in the middle. Reno has incredible potential, walkable downtown, beautiful setting, the river walk and college... it's so disappointing to see it struggle.

Looks like they overbuilt for the market. I wonder how many contracts MGM will look to whipe out in bankruptcy.

That's an awfully ironic Reno Peppermill ad that showed up below the article.

@jonasjones - The Silver Legacy is still operating. It's not dead yet, and likely won't be. They just have to get rid of that debt.

@weatherman2111 - Though Reno is probably oversaturated now (due to the economy and Indian casinos in northern California) the market has been correcting itself. Since the Silver Legacy opened in 1995, the following Reno casinos have closed (not in order)... Harolds Club, Nevada Club, Eddie's Fabulous 50s, Sundowner, Comstock, the Riverboat, the Virginian, Flamingo Hilton (which became Golden Phoenix, which has also since closed) the Holiday (which closed, became the Siena Spa, closed again and reopened again as the Siena), Fitzgeralds and Old Reno. That's a lot of market correction. Which really sucks, because I love going to Reno.



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