What is Red Rock Resorts, Inc.?
On Wednesday, the Nevada Gaming Control Board released the agenda for a special meeting to be held on January 21. A new company, Red Rock Resorts, Inc., will go before the board to seek approval for a public offering while becoming the sole manager and sole voting member of Station Casinos LLC. Yesterday, Red Rock Resorts, Inc. filed an S-1/A with the SEC.
Red Rock Resorts Inc. is the new name of Station Casinos Corp. and the vehicle for Station Casinos’ return to the public market. Station Casinos registered the domain name “redrockresortsinc.com”, but it does not currently direct to a live website. (The more obvious domain name for the company, “redrockresorts.com”, has been taken by someone else.)
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In a related vein, Fertitta Entertainment LLC, which has managed Station Casinos properties since 2011, also seems lacking in terms of its online presence. Its website, at www.fertittaentertainment.com, which has been live since April, 2011, is still unfinished with dummy text on some pages. See here, here and here. Recall that Station Casinos LLC has agreed to buy the company for $460 million concurrent with the Station Casinos Corp. IPO. It is unclear from the related SEC filings so far whether the Fertitta Entertainment purchase will include the transfer of this website to Station Casinos.
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See more of our analysis of the Red Rock Resorts/Station Casinos IPO:
- The insiders are cashing out at a high price compared to the company’s estimated equity.
- The tax receivable agreement could drain substantial amount of cash out of the company and affect free cash flow.
- The dual-class structure will make public investors second-class shareholders.
- The lack of disclosure regarding the regulatory problems of Deutsche Bank, a 25% current owner.
- Growth concerns in the company’s primary Las Vegas locals market and the lack of new development agreements in the tribal gaming market.
