Reno Casino to be Operated by Financier JPMorgan
Just a year ago, the casino industry was dominated by wild spending on massive projects, billions borrowed to build taller, bigger, more elaborate gambling resorts to stay ahead of competition. Now, the credit market has shrunk to the point that financiers are assuming the management of projects unable to stay liquid.
First came Deutsche Bank removing Bruce Eichner from the Cosmo Hotel and Casino project on the Las Vegas Strip. The latest move is JPMorgan taking over operations at the Grand Sierra Resort and Casino, in Reno.
Reno officials conferred with representatives from JPMorgan, and announced that there had been no sale. But it was confirmed that owner Grand Sierra Resort Corporation would be ceding control of day-to-day operations to Morgan management.
Grand Sierra Corp. bought the property from Caesar's in 2005, and embarked on an ambitious renovation, including luxury condos and an indoor water park.
JPMorgan is the main financier for the casino.
As with Deutsche Bank and the Cosmo Casino, the creditor is expected to be interested in selling the property to casino operators, removing the property from its books.
