The all-cash transaction is not expected to close until the end of the year, pending Nevada regulatory approval and the Palms is expected to remain closed until the tribe takes over.
Red Rock Chief Financial Officer Stephen Cootey said the San Manual tribe, which operates a casino resort in the San Bernardino County community of Highland, “came forward with a great opportunity.” “We needed to focus on the core parts of our business,” Lorenzo Fertitta said.
He said the company spent “too much money” on the nightlife and daylife business in a market that greatly overcrowded and wasn’t growing.
