In the luminous cityscape of Las Vegas, a new star has risen: the Durango Casino & Resort. This dazzling addition to the Southwest landscape opened its doors on December 5 to an illustrious beginning, capturing the attention of casino analysts and fortune-seekers alike. The $750 million investment from Red Rock Resorts (NASDAQ: RRR) aims to be the crown jewel of this rapidly expanding quadrant of the city, renowned for its dearth of any similar establishments.
Lavishing over 73,000 square feet of gaming paradise, Durango comes fully equipped with a sportsbook, a trove of 2,000 gaming machines, and a collection of 40 table games. It’s not just these attractions luring patrons—the delectable variety of food and beverage (F&B) venues court a dynamic crowd. Notably, the younger demographic, aged 25-35, are frequenting both the casino floor and F&B outlets with a vivacity that has pleasantly surprised management.
This shadow of surprise cuddles the words of Deutsche Bank analyst Carlo Santarelli, who has emblazoned the pages of his client notes with analysis on Durango’s vibrant clientele. Having graced the resort’s inauguration, Santarelli endorses Red Rock with a “buy” rating and a buoyant $54 price target, promising a nudge upward from the prevailing stock perch.
While the shimmer of newness could momentarily divert attention from Red Rock’s flagship Summerlin casino, executives maintain a firm belief that loyal regulars shall make a steadfast return. Market apprehensions about potential cannibalization seem unfounded, as initial observations post-Durango’s launch reveal an uptick in visitations across both venues—possibly spurred by the magnetism of the in-season NBA tournament, as Bank of America analyst Shaun Kelley speculated.
However, not all competitors stand unscathed. A stone’s throw away, Boyd Gaming’s (NYSE: BYD) Orleans and the neighboring Suncoast might feel the ripples of Durango’s enticing allure. Yet, when one looks closely at the bigger picture, Durango’s auspicious debut signals a profitable venture from the get-go—prudence whispered by Red Rock management and echoed by analysts.
This new resort is not just a gambler’s haven but a sanctuary tailored for the Las Vegas locals. Its extensive array of eateries beckons those driving back from the Strip, seeking solace and sustenance after hours spent under neon lights. Durango entices them with open doors and the comfort of good food within arm’s reach from their homes.
With Wynn Resorts’ (NASDAQ: WYNN) Encore Boston Harbor serving as a lodestar, Kelley postulates that Durango will settle at an enchanting daily visitation of 10K—subtly lower than Red Rock but notable in its own rite. The undulating waves of fortune thus dance around Durango, heralding a future embroidered with success in the heart of Sin City.