Cannery Casino Resorts

Cannery Casino
Founded2001 (2001)
FounderWilliam Wortman and William Paulos
DefunctDecember 1, 2016 (2016-12-01)
FateAcquired by Boyd Gaming
Headquarters
Spring Valley, Nevada
,
United States
Key people
William Wortman and William Paulos

Cannery Casino Resorts was a hotel and casino operator based in Spring Valley, Nevada.[1] It was acquired by Boyd Gaming in 2016.[2]

History

Cannery Casino Resorts was an outgrowth of Millennium Management Group, a casino management company. Millennium was founded in 1996 by two long-time gaming executives, Bill Paulos and Bill Wortman.[3][4]

Millennium's first venture, in 1997, was to join a consortium competing for a license to develop a casino in Detroit, the proposed Greektown Casino Hotel.[5] The Greektown casino opened in 2000 under Millennium's management.[6]

Cannery Casino Resorts was created in 2001 by Millennium to develop the Cannery Casino and Hotel in North Las Vegas.[7]

In 2002, Millennium assumed management of the casino at the JW Marriott Las Vegas under a ten-year lease agreement and rebranded it as the Rampart Casino.[8][9][10] Meanwhile, Millennium transitioned to a consulting role at Greektown, as the casino's owners took over management.[11]

The Cannery opened in 2003 at a cost of $105 million.[12]

In 2005, Oaktree Capital Management agreed to buy 33 percent of Cannery Casino Resorts.[4] With the funds injected, Wortman was able to buy out two minority partners in the Nevada Palace casino, which was placed under the Cannery umbrella.[13]

Wortman bought a 20 percent stake in the Rockingham Park racetrack in New Hampshire in 2005, and Cannery obtained an option to buy the park outright.[14] The company led an unsuccessful lobbying effort to legalize casinos in New Hampshire, and proposed a $450 million expansion of the park with up to 5,000 slot machines.[14]

Oaktree funding also enabled CCR to buy The Meadows, a harness racetrack near Pittsburgh, in November 2006 from Magna Entertainment for $200 million.[4][15] Oaktree's stake in the company increased to 42% as part of the deal.[13] A temporary casino at the racetrack was opened in June 2007, and the permanent facility opened in April 2009.

In December 2007, Australian gaming company Crown Limited agreed to buy CCR for $1.75 billion.[16] The agreement was ended in March 2009, however, with Crown instead buying a 24.5 percent stake in the company for $370 million, and paying a $50 million termination fee.[16]

Eastside Cannery Casino and Hotel opened on the site of the Nevada Palace in August 2008.

Cannery's lease of the Rampart Casino expired in March 2012, and the casino's owner, Hotspur Resorts, decided to manage the casino itself instead of renewing the agreement.[17]

In May 2014, Cannery agreed to sell The Meadows to Gaming and Leisure Properties for $465 million, with the proceeds going towards reducing company debt.[18]

Boyd Gaming purchased Cannery in December 2016 for $230 million.[19]

Casinos

References

  1. ^ "Cannery Casino Resorts, LLC Company Information". Retrieved October 11, 2012.
  2. ^ Corporation, Boyd Gaming. "Boyd Gaming Completes Acquisition Of Las Vegas Assets Of Cannery Casino Resorts". www.prnewswire.com. Retrieved 2021-09-27.
  3. ^ Becky Yerak (May 3, 2000). "Millennium staffed with casino veterans". Detroit News – via NewsBank.
  4. ^ a b c Liz Benston (September 13, 2008). "Cannery partners did it their way". Las Vegas Sun. Retrieved 2019-04-04.
  5. ^ Judy DeHaven (October 19, 1997). "Millennium brings clout to Greektown". Detroit Free Press – via Newspapers.com.
  6. ^ Michael H. Hodges (November 10, 2000). "Taking a gamble: A complete guide to Greektown Casino? You bet". Detroit News – via NewsBank.
  7. ^ Mike Stone (April 20, 2016). "Boyd Gaming nears deal to buy Cannery Casino Resorts: sources". Reuters. Retrieved 2019-04-04.
  8. ^ David Strow (March 7, 2002). "Casino to get its fourth name in three years". Las Vegas Sun. Retrieved 2019-04-04.
  9. ^ Jeff Simpson (July 27, 2002). "JW Marriott handling challenge". Las Vegas Review-Journal – via NewsBank.
  10. ^ Jeff Simpson (November 30, 2002). "Different name, different game". Las Vegas Review-Journal – via NewsBank.
  11. ^ Becky Yerak (May 29, 2002). "Tribe now runs Greektown casino". Detroit News – via NewsBank.
  12. ^ Timothy McDarrah (January 3, 2003). "Cannery offers LV northern exposure". Las Vegas Sun. Retrieved 2019-04-04.
  13. ^ a b Stutz, Howard (6 September 2006). "Second Cannery to come". Las Vegas Review-Journal. Retrieved 24 March 2012.
  14. ^ a b Bencks, Jarret (21 October 2009). "Developer's vision for The Rock hasn't changed". Eagle Tribune. Retrieved 24 March 2012.
  15. ^ "Meadows casino to open June 11". Pittsburgh Business Times. 6 June 2007. Retrieved 23 March 2012.
  16. ^ a b Stutz, Howard (13 March 2009). "Plan to buy Cannery Casino Resorts falls apart". Las Vegas Review-Journal. Retrieved 23 March 2012.
  17. ^ Green, Steve (9 May 2011). "Herbst Gaming in noncompete, consulting deal with Rampart Casino". Vegas Inc. Retrieved 11 March 2012.
  18. ^ Howard Stutz (14 May 2014). "Cannery Casino Resorts sells Pennsylvania racetrack casino". Las Vegas Review-Journal. Retrieved 18 May 2014.
  19. ^ Richard N. Velotta (April 25, 2016). "Boyd acquires Cannery properties for $230M". Las Vegas Review-Journal. Retrieved 2016-04-25.