Indy Gaming: Why Penn is betting big on M Resort expansion
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A $206 million expansion at M Resort is underway some 26 months after owner Penn Entertainment announced plans to double the Henderson casino’s hotel capacity.
The timing is perfect, said Penn Executive Vice President of Regional Operations Todd George.
The Henderson market has lost two casinos since the pandemic: the Fiesta Henderson was demolished in September 2022 while the Eastside Cannery on Boulder Highway has never reopened. Competition, however, could arrive from Red Rock Resorts, which has hinted at developing a casino-hotel in the nearby Inspirada community, where it owns land.
Penn is bullish on the market: George pointed toward the growing neighborhoods in the vicinity of M Resort, which sits on 93 acres bordered on the west by Las Vegas Boulevard and St. Rose Parkway to the north.
“I’m amazed at the number of rooftops we see between the Strip and our property,” George said, noting that M Resort draws out-of-town customers when special events are happening on the Strip. “We’ve seen growth in our business at the M every year that we’ve owned it.”
Several floors of the second hotel tower are now rising on the east side of the property next to the original building. George said the expansion could open by the first half of 2026.
“The property was designed for another tower,” George said. “A lot of the legwork and overall infrastructure had already been completed. It allows us to do this quite efficiently.”
Penn is increasing M’s total capacity from 390 rooms and suites to 774 while adding additional conference space and other amenities.
As part of the expansion, George hinted that Penn may consider rebranding M’s sportsbook — which is currently managed by Caesars-owned William Hill — as ESPN.Bet. Last year, Penn scrapped its Barstool sports betting business for a $1.5 billion, 10-year partnership agreement with the nation’s most recognized cable sports network.
The company has begun branding many of its retail sportsbooks in 16 states as ESPN.Bet. However, popular sports betting operators such as DraftKings and FanDuel have been reluctant to get licensed in Nevada because the state requires in-person registration at a casino for mobile sports betting. Most other states offer remote sign-ups for mobile.
George said that if Penn were to rebrand M’s sportsbook as ESPN.Bet, “it would be a flagship for the company,” but that decision hasn’t been made yet.
“We’re working through what that could look like,” he said.
Through its marketing partnership with the Las Vegas Raiders, M Resort already attracts a large swath of football fans, given the casino’s close proximity to the NFL team’s corporate headquarters and training facility.
George pointed to Penn’s “large database of customers from across the country” that already come to Las Vegas. The company has 42 additional casinos in 20 states. Getting players from those properties who want to visit Las Vegas to stay at the M Resort is the main incentive behind the expansion.
That was the plan in 2010 when Penn spent $230.5 million to acquire M Resort a year after the property opened. The stylish casino quickly fell into financial trouble when the original owners couldn’t get out from under the weight of an unmanageable $860 million in debt.
Penn marketed M Resort as a Las Vegas connection when it began managing a San Diego-area tribal casino. That contract ended and Penn acquired the Tropicana Las Vegas in 2015. However, financial issues from the pandemic led Penn to sell Tropicana to real estate investment trust Gaming and Leisure Properties, which leased the now-demolished Rat Pack-era hotel-casino to Bally’s Corp.
George said Penn also sees opportunities for the M Resort with the Tropicana site set to become home to a $1.75 billion Major League Baseball stadium for the relocated Athletics.
“We get our share of locals play. But where we're looking at growth potential is with the California customer,” George said. “We're also locked from how big of a group business portfolio we can have. These additional rooms will help that market while still providing room for gaming customers.”
Lawsuit claims Wheel of Fortune slot machines are rigged against gamblers
Slot machine developer International Game Technology (IGT) was sued in federal court last week by four casino customers claiming Wheel of Fortune slot machines — the company’s most popular gaming device in casinos worldwide — are rigged.
The class action lawsuit, filed in the U.S. District Court in Reno, also names five casino operators as defendants — MGM Resorts International, Bally’s Corp., Boyd Gaming, Station Casinos and Penn Entertainment.
The lawsuit claims the design of Wheel of Fortune’s bonus wheel is deceptive. The spaces on the wheel are equal in size, but a computer program controls the outcome of the spin.
Reno attorney David O’Mara, who filed the lawsuit, wrote, “By way of analogy, the Wheel of Fortune game … is the modern-day equivalent of a roulette wheel with a magnet surreptitiously affixed beneath the green zero and double-zero segments.”
According to the lawsuit, “the player’s spin of the wheel is not random at all, but rather is predetermined by an internal computer that defendants have programmed to ensure the wheel stops much more frequently with the indicator pointing at one of the segments with a lower monetary amount.”
IGT, which is part of a $6.3 billion deal that will see it merged with Everi Holdings into a private gaming equipment provider owned by hedge fund Apollo Global Management, unveiled the Wheel of Fortune slot machines in 1996.
The game is a staple on casino floors worldwide with more than 250 variations that have paid out more than $3.6 billion in jackpots. At October’s Global Gaming Expo, IGT displayed 11 new concepts for Wheel of Fortune.
Raiders player honors a Southern Nevada foundation focused on mental health
A member of the Las Vegas Raiders honored the Henderson-based Avery Burton Foundation as part of the NFL’s “My Cause My Cleats” campaign designed to raise awareness for national and community nonprofit organizations.
The Avery Burton Foundation was created by longtime Las Vegas public relations executive Reggie Burton in 2017 after his oldest son died from suicide following a major depressive episode just two months after graduating from UNLV. The foundation was established to honor his memory and promote mental health awareness and education.
Raiders starting defensive tackle John Jenkins wore the custom-designed Nike Air Jordan cleats Monday night at Allegiant Stadium when the Raiders played the Atlanta Falcons in a nationally televised game.
The shoes featured the foundation’s logo and quote: “I don’t have weekdays in my calendar — only strong days.” Also written on the cleats was the phrase: “Depression Doesn’t Discriminate.”
In 2022, the foundation led a discussion with Raiders’ employees about mental health in honor of Minority Mental Health Awareness Month.
“It means a lot to see the nonprofit named after my brother featured and supported on one of the biggest stages the NFL offers,” said Amani Burton, a foundation board member and game time events coordinator for the NFL’s Jacksonville Jaguars.
The Avery Burton Foundation is just one of many causes supported by the Raiders team members. Here is a full list of the players and their causes.
What I'm reading
🗽 New York: Sands Casino environmental report generates debate — Luke Feeney, Long Island Press
Sands said it was planning water and energy systems, expansive green spaces and thoughtful design to show a “commitment to sustainability and resiliency.”
🚙 Gas prices set to hit the lowest they've been since 2021, AAA says — Saleen Martin, USA TODAY
For those making the trek along Interstate 15, California ($4.36 per gallon) and Nevada ($3.63 per gallon) have the second and fourth-highest gasoline prices, respectively, in the U.S.
☑️ Gaming Leaders Reaffirm Optimism in Second Trump Administration — Ryan Butler, Covers
American Gaming Association CEO Bill Miller said the influence from Elon Musk and Vivek Ramaswamy will mean less pressure on gaming from the federal government.
🎰 Documents reveal one Las Vegas company made an offer, another interested in Concord (New Hampshire) Casino — Sruthi Gopalakrishnan, Concord Monitor
Full House Resorts and Bettor Investments Group have been linked to efforts to purchase the small casino.
💰U.S. Senators urge investigation into anti-competitive behavior by DraftKings, FanDuel — Amy Thielen, Seeking Alpha
The lawmakers believe the sports betting giants — not licensed in Nevada — are violating antitrust laws by interfering with rivals’ relationships with sports leagues, marketing partners, payment processing companies and “critical” vendors.