Fifth Street Gaming will take over operations at two Siegel Group casinos
27 August 2012
Terms weren't disclosed. The current gaming operator at both properties is Golden Route Operations. Its contract is expiring, and executives said it will continue operating the casinos until the Fifth Street contract is approved by regulators.
Both properties have about 150 gaming machines, and the Gold Spike has about a half dozen table games, Fifth Street Gaming CEO Seth Schorr said.
Fifth Street Gaming also is overseeing the redevelopment of the Downtown Grand Hotel and Casino, formerly the Lady Luck, which is scheduled to reopen late next year. Fifth Street has a deal to lease and operate the hotel-casino. It also is working on Downtown3rd, a district it says eventually will include 18 bars and restaurants on Third Street between Stewart Avenue and Ogden Avenue and the surrounding downtown neighborhood.
"The management of casino operations at Gold Spike is a natural evolution for us," Schorr said in a statement. "The property will now be absorbed into Downtown3rd, and we have already made a significant investment to upgrade the technology and, ultimately, the experience, at Gold Spike.''
Schorr said Siegel Slots and Suites is a good fit for the company because executives already are familiar with the customer base.
In an interview, Schorr said he's optimistic gaming revenue will grow next year in his company's downtown Las Vegas and North Las Vegas markets. For the 12 months ending June 30, it was up 2.5 percent downtown and flat in North Las Vegas compared with the year-earlier period.
"Downtown is an exciting place to be," he said, citing the excitement driven by the move of Zappos.com and other organizations there. "It's not a fad.''
Fifth Street Gaming's portfolio already includes the Lucky Club Casino and Hotel, Silver Nugget Casino and Opera House Saloon and Casino, all in North Las Vegas; and the Little Macau Ultra Tavern in Las Vegas.
"We are excited to be joining forces with Fifth Street Gaming at our two casino properties," Michael Crandall, senior vice president of the Siegel Group, said in a statement. "We believe with us driving our loyal customers into the casinos from our multiple properties around town, Seth and his team will do an outstanding job of providing them with an exceptional experience. We look forward to a long working relationship."
The Siegel Group owns several local boutique hotels as well as apartment complexes and other developments.
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