The Riviera Casino - Black Hawk
By Jeffrey V. Smith
Riviera Holdings Corp. of Las Vegas, which owns the historic Riviera on the Strip, announced it is selling its casino in Black Hawk for $76 million to Reno’s Monarch Casino & Resort Inc, owner of the Atlantis Casino Resort Spa. The sale is subject to regulatory approval and is expected to close before the end of the second quarter of 2012.
Monarch is owned by the Farahi Family, which has an extensive business and gaming history. The family of founder David Farahi, which includes co-chairmen and CEO John Farahi, President Bob Farahi and former CFO Ben Farahi, own more than half of the company. The family is best known for building the Atlantis resort in Reno from its beginnings as the Golden Road Motor Lodge in the 1970s.
“This transaction is a true win-win for everyone involved,” Chief Executive Officer of Riviera Holdings Corporation Andy Choy said. “Divesting the Black Hawk property allows us to focus on turning around the historic Riviera Las Vegas.”
He also added, the employees of the Riviera Black Hawk “will have access to the resources they need to take that property to the next level.”
The deal was the first major one for Riviera Holdings since it emerged from bankruptcy this spring in a deal put together by hotelier Barry Sternlicht. It is unknown, however, if the casino will keep the same name but Farahi said no immediate investment will take place at the property after the purchase is completed.
“Today’s announcement is an important milestone for us. Despite the significant challenges posed by the economy over the last several years, we have successfully positioned Monarch to take advantage of what we believe to be an attractive growth opportunity,” Monarch’s Co-Chairman and Chief Executive Officer John Farahi said. “Our decision to acquire this particular property was influenced by a combination of factors, including our desire for growth through geographic diversification, the Riviera Black Hawk’s close proximity to the Denver market, its relatively favorable regulatory environment and our ability to maximize revenue potential by applying our operational expertise at a facility whose parent company recently emerged from bankruptcy. We look forward to welcoming the Riviera Black Hawk team of approximately 250 employees to the Monarch family.”
The Riviera Black Hawk opened in 2000. The property is the first casino in Black Hawk seen by visitors arriving from Denver on Hwy 119. It features approximately 750 slot machines, eight table games, a 250 seat buffet-style restaurant and a parking structure with approximately 500 spaces.
