PENN Entertainment organized a groundbreaking celebration for its M Resort Spa Casino in Henderson, Nevada on December 11. It marked the beginning of the property’s expansion project.
Even so, the Pennsylvania-based gaming operator declared in October 2022 that M Resort will be part of its $850 million expansion plan. The property is 10 miles from Las Vegas. Yet, PENN plans to upgrade its casinos in Ohio and Illinois.
The M Resort expansion project will cost $206 million. It entails adding 384 rooms hence increasing the number of suites and rooms to 774.
PENN released a statement stating that the gaming site will widen its meeting space, increase amenities, and form other business collaborations that it will disclose later. The company runs M Resort.
Gaming and Leisure Properties own the real estate assets. Such partnerships in the state’s casino sector make operators responsible for maintaining and upgrading casinos instead of landowners.
Is the Casino’s Expansion Necessary?
PENN made the right move when it decided to expand M Resort Spa Casino. Besides the property, the company has only one more casino in Nevada, Cactus Pete’s Resort Casino in Jackpot.
Still, Henderson is among the busiest and largest suburbs in Las Vegas. Therefore, it makes it a perfect location for many operators. The city hosts several casinos that offer Vegas residents a wide array of casino games.
Its operators get stiff competition from other casinos hence prompting them to regularly renovate and upgrade their sites to attract more players. Besides PENN’s planned expansion at M Resort, Red Rock Resorts, and Boyd Gaming are likely to construct a new casino in Henderson soon.
The two companies are determined to venture and increase their presence in the city’s gaming market. Reports show that Las Vegas’ population is on the rise as some people are relocating from states with high tax rates such as California.
Some of the city’s new inhabitants purchase property in cash. Still, they make significant savings on their income tax as Nevada doesn't charge it. This leaves them with more money in their pockets and some of them opt to spend it in casinos.
PENN’s Other Gaming Projects
Bally’s Corporation bought Tropicana’s operating rights in 2021. Thus, M Resort is PENN Entertainment’s only casino that is near the Vegas Strip.
Some gaming analysts claim that this might change soon. However, it is economically viable for PENN to invest more money in expanding M Resort to accommodate more clients.
The gaming operator is allocating more funds for its Midwest properties. The region earns it a high gaming revenue annually.
It stated that the new casino hotel is in its plan to build new brick-and-mortar gaming sites in Illinois, Joliet, Aurora, and a hotel in Columbus. PENN added that the City of Aurora promised to offer $50 million for its gaming project. Gaming and Leisure Properties, Inc. will contribute $575 million out of the $850 million that it will spend on its four projects.