Red Rock Resorts touts record first quarter revenue – CDC Gaming

Red Rock Resorts set a first-quarter record for net revenue and the second-highest for adjusted earnings, while maintaining near-record margins of 46.5% in Las Vegas.

Red Rock Vice President and Chief Financial Officer Stephen Cootey warned Wall Street analysts Wednesday that temporary construction impacts at several of their properties will increase in the second quarter. Without saying what they are, the company also said it’s working on planning for two development projects and won’t have anything to announce until 2027.

Cootey immediately pointed to the Durango Casino & Resort in southwest Las Vegas that opened in December 2023. It is driving the Las Vegas locals market and incremental play from existing customers and will be a meaningful part of the portfolio for growth.

Since completing an expansion in December that added more than 25,000 square feet of space, Cootey said their new high-limit slot area has validated similar investments across the portfolio. Further expansion is ongoing at the Durango that will add 275,000 square feet with additional slot machines and other gaming, along with new amenities, including a 36-lane bowling alley, luxury movie theater, new dining, country and western bar, and live-music concept. The project will open in the summer of 2027 at a cost of $385 million.

Cootey said they said continued strength in carded slot play across their database and robust spend per visit helped drive first-quarter revenue to a record.
For nongaming, the hotel and food and beverage segments had near records in revenue and profitability.

During the second quarter, trends are stable in their core slot and table business across the Las Vegas marketplace, Cootey said. Construction at Durango, Green Valley Ranch and Sunset Station will cause millions of dollars in disruptions in the second quarter.

For 2026, Cootey said they expect to spend between $375 million and $425 million in capital investments. They’re making progress in their refresh at Sunset Station in east Henderson, which includes a casino floor renovation, restaurants, and country and western bar. Work will be done during 2026.

“Building on this momentum, we are building on the next phase of Sunset Station designed to further strengthen the property’s competitive position and broaden its customer appeal to capitalize on the continued growth in Henderson, particularly from the master planned communities of Ascaya and Cadence,” Cootey said.

There will be an expansion and enhancement of the movie theaters, as well as a relocation of the bingo space at Sunset Station. The buffet will be converted into a high-end steakhouse and high-limit table games room. Work will begin in the second quarter and be completed in 2027 at a cost of $87 million.

Board member Lorenzo Fertitta said they’re working through the pipeline of potential future projects, such as adding rooms, a spa, and additional meeting space at Durango.

“In addition to that, we’re working on two new greenfield projects, going through the process working on the plans, scale, and pricing,” Fertitta said. “We’re making progress, and we don’t have anything to announce now or in the very near future. As we turn the corner into next year, we will have more visibility into what the development plans are going to look like.”

There are six development opportunities in Las Vegas and one in Reno, Fertitta said.