The continued struggles of the Riviera Las Vegas property became more evident yesterday as news broke that two members of upper management left the company. The Las Vegas Sun reported that the loss of Riviera executives continued as CEO Andy Choy was fired and Senior Vice President Noah Acres resigned. Both men were experienced gaming executives with a history of involvement in the Las Vegas and Macau casino industry.
Acres was also one of the few Las Vegas executives to actively participate in forums including posts under the noah_the_donkey handle at the Two Plus Two forum. Acres has offered information on Riviera promotions and casino management insight in many threads there.
Riviera Failed Promotions
There were several promotions and gimmicks that Riviera attempted since it last exited bankruptcy in 2011. Acres was the lead in pushing these promotions to draw gamblers into the long forgotten Riviera.
The most generous offer was a $1,000 loss rebate on slot and video poker play. It was first offered in April 2012. This offer was hit hard by advantage players. Within two days it was altered to exclude multi play video poker machines, video table games and high limit machines. The promotion was completely withdrawn in July 2012.
Acres also rolled out new rules in an attempt to give savvy gamblers a reason to visit Riviera. The casino raised its odds on craps up to 1000x. Single zero roulette was also introduced, as well as single deck blackjack that paid 3-2 on a natural, unlike the 6-5 that plagues most Las Vegas Strip single deck blackjack games. Unfortunately, these friendly rules were unable to entice enough gamblers. Craps was lowered to 10x and a second zero reappeared on the roulette wheel within just a few months. The number of single deck blackjack tables that pay 3-2 was lowered to just one and that table carries a higher minimum bet than other games.
Riviera Financial Struggles
Riviera posted a net loss of $29.6 million in 2012. Much of this loss came from an asset impairment charge, but there was still a cash loss of about $6.8 million. This brought the unrestricted cash level of Riviera Holdings to $13.9 million to start 2013. The company has $62 million in restricted cash but those funds are reportedly tied to a covenant in its $77 million long term debt agreement. This was explained in a Moody’s downgrade of Riviera Holdings debt in July 2012.
Riviera posted a $7 million loss in Q1 2013, with nearly $4 million of that loss in cash. This left the company with just $10 million in unrestricted cash going into Q2 2013. The casino floor won just $6.3 million during the three month period and total revenue, including hotel, restaurants and entertainment, totaled just $16.5 million. Total revenue in 1Q 2012 was $23 million.
Challenging Location on Las Vegas Strip
It is no secret that Riviera’s location is far from prime Las Vegas Strip real estate. Circus Circus and LVH, formerly the Las Vegas Hilton, are the only casinos within a reasonable walking distance of Riviera. Even when SLS Las Vegas is completed on the old Sahara property and Genting completes its resort on the former Stardust property, both of these casinos will not be within a short walk of Riviera. The guests at these new resorts are also not likely to consider Riviera a must-see casino due to its lack of nightclub, high-end restaurants and any unique amenity or theme. It is also unknown if the neighboring Fountainbleau that has been sitting unfinished since 2009 will ever be completed.
Riviera Needs to Find Niche to Survive
Riviera’s challenges are clear. It could not draw gamblers in the doors with some of the best games in town, its most popular promotion failed to retain players, its location is terrible and it lacks entertainment options that are important for today’s Las Vegas visitors. The clock is ticking for Riviera. Doom is not imminent, but without a unique draw, Riviera’s relevance in Las Vegas will continue to be low as will its chances to turn a profit.
100% up to $3,000 Bonus
Bovada is our most recommended ONLINE CASINO and POKER ROOM for US players with excellent deposit options. Get your 100% signup bonus today.
Leave a Reply
You must be logged in to post a comment.