Monarch earnings drop
Regulatory issues in Colorado and slow convention business in Reno brought a drop in second-quarter income for Reno-based Monarach Casino & Resort Inc.
The company, which owns the Atlantis Casino Resort Spa in Reno and Monarch Casino Black Hawk near Denver, earned $3 million in the second quarter, which compares with net of $6.1 million in the same period a year earlier.
(The net income in last year’s figures was boosted by a $500,000 accounting change.)
The company’s net revenue declined to $47.8 million in the second quarter from $49.65 million in the comparable period a year earlier.
John Farahi, co-chairman and chief executive officer of the company, said the company spent $1 million during the quarter to support opposition to a Colorado ballot measure that would allow expansion of gaming to horse-racing facilities in the state.
He said the Colorado operations also faced headwinds as the company is reworking parts of its master plan to expand and renovate Monarch Casino Black Hawk.
The company expects to open bidding on that work in the fourth quarter.
In Reno, Farahi said hotel revenue fell to $6 million, compared with $6.4 million a year earlier, as the result of slower conventions and meetings business.
Higher wages, he said, trimmed margins in both the hotel and food operations. The food-and-beverage business, Farahi said, also was affected by rising commodity prices.
Per the agreement, Caesars will continue to operate Harrah’s for the first half of 2020 before it’s redeveloped into a non-gaming hotel and mixed-use development.