Marnell Gaming LLC today received the first approval it needs from state gaming regulators to acquire the Nugget casino in Sparks.
The Gaming Control Board unanimously approved Marnell Gaming’s planned purchase of the Nugget for an undisclosed sum, a transaction that was first announced in February. Pending final approval from the Nevada Gaming Commission later this month, the deal is expected to close in May.
Today’s initial regulatory approval came a day after federal officials announced a $1 million civil penalty against Sparks Nugget Inc., the entity that had previously sold the casino in 2013. Sparks Nugget was hit with the fine from the Financial Crimes Enforcement Network for “egregiously and willfully” violating anti-money laundering requirements.
Marnell Gaming CEO Anthony Marnell III addressed those problems today, telling board members in Carson City that such issues “will never happen” under his watch. Marnell said his company had reached out to a former control board chairman to help with its efforts to comply with anti-money-laundering laws.
Board Member Terry Johnson later thanked Marnell for his assurances, saying it seemed like the new ownership was approaching anti-money-laundering compliance with a “high degree of seriousness.”
Marnell used to be president of Henderson’s M Resort, which he opened in 2009. He stepped out of that role last year after the resort’s operator, Penn National Gaming Inc., bought the Tropicana and appointed a new executive to oversee both properties.
Once his company takes over the Nugget, Marnell indicated that it plans to make some significant improvements.
“The property is in desperate need of capital,” he told the board. “There’s an opportunity to improve the operations of the business substantially.”
Marnell’s company plans to invest about $25 million over the next 18 to 24 months, he said, as it implements new player tracking technology and slot machines, among other changes. He said Marnell Gaming also plans to remodel the Nugget’s west hotel tower and overhaul the convention center.
Marnell also said he saw an opportunity to cross-market with the casinos his company has in Laughlin — the Colorado Belle and Edgewater. The fact that Marnell Gaming will operate casinos in both Northern and Southern Nevada resonated with Johnson, who said it’s “always a good thing” to see a company with a presence in both parts of the state.
The gaming commission should consider the Marnell Gaming transaction in two weeks.