Colorado resort helps drive Monarch Resorts record 3Q earnings

Reno-based Monarch Casino & Resort Inc. whitethorn soon vie for Las Vegas customers astatine its Black Hawk, Colorado, property, a gaming expert said successful a study to investors Monday.

The institution that operates the Atlantis successful Reno arsenic good arsenic the Monarch Casino Resort Spa Black Hawk has been buoyed by expanded gaming successful Colorado and improvements successful the Colorado upland resort.

“Black Hawk continues to ramp post-renovation and the removal of betting limits connected array games and the instauration of baccarat,” Barry Jonas, an expert with Atlanta-based Truist Securities, said successful a enactment to investors.

“In addition, absorption noted they are gaining traction with determination VIPs since Amendment 77 went live, but stay successful aboriginal innings,” Jonas said. “We spot the spot competing much and much with Las Vegas, fixed its newer amenities and expect a expansive opening enactment aboriginal adjacent twelvemonth to assistance thrust much VIP play.”

Amendment 77, approved by the state’s voters successful 2020, permitted voters successful Black Hawk, Central City and Cripple Creek, Colorado, the quality to grow wagering limits to supra $100 a stake and to let for the playing of gambling games successful summation to slot machines, blackjack, poker, roulette and craps. The authorities ballot permitted the 3 cities to grow their offerings connected May 1.

The investigation came arsenic Monarch posted grounds third-quarter net Monday.

Monarch Co-Chairman and CEO John Farahi said his institution “benefited from the beardown ongoing pandemic recovery, economical and colonisation maturation successful Denver and Reno, and the notable interaction of the removal of betting limits successful Colorado.”

The company’s Colorado spot is driving astir of the growth.

“Our Black Hawk operations are ramping up, and we are moving diligently to implicit the bequest installation translation by year-end,” Farahi said successful a release. “This summation volition summation casino abstraction by astir 25 percent and edifice seating by astir 35 percent. In conscionable a abbreviated time, the spot has established itself arsenic the starring casino edifice successful the greater Denver market, and we proceed to turn marketplace share.”

Farajo said the removal of array crippled limits resulted successful an summation successful caller lawsuit visitation, “particularly precocious worth players from crossed the Front Range.”

“We person been capable to negociate the labour shortages and run the hotel, and nutrient and beverage outlets (are) astatine afloat capableness connected our busiest nights,” helium said.

Monarch shares, traded connected the Nasdaq exchange, soared Tuesday, closing up 8 percent, $5.49 a share, to $73.74 a stock with measurement much than doubly the regular average.

Contact Richard N. Velotta astatine rvelotta@reviewjournal.com oregon 702-477-3893. Follow @RickVelotta connected Twitter.