Las Vegas has become so much more than the Las Vegas Strip.
Even as Caesars Entertainment (CZR), MGM Resorts (MGM), Wynn Resorts (WYNN), and new players including the massive Resorts World Las Vegas have continued to expand the Strip's offerings, a variety of other players have built downtown Las Vegas and other parts of the city into tourist draws.
Circa, for example, has shown that you can bring a Strip-like destination to Fremont Street and attract upscale patrons. While that area used to be an old-school way to rough it for a night or two in a grittier environment, Circa rivals anything that Caesars, MGM, or Wynn offers.
This addition of places that can draw tourists has expanded beyond Fremont Street. The new boutique Dream Resort has begun construction near the airport, while Penn Entertainment (PENN) has released plans to build a huge expansion of its M Resort
South of the Las Vegas Strip, the M Resort became Penn's Las Vegas flagship after the company recently sold the Tropicana to Bally's.
That sale led some to question whether the controversial owner of the Barstool Sports brand would exit Las Vegas or make it less of a focus. But this expansion plan shows the company still has major ideas for Sin City.
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Penn Plans a Second New Hotel Tower
Penn plans to build a second hotel tower at its Las Vegas property. The move is part of a larger expansion, which will also see the company build new properties in Illinois and Ohio as part of an overall $850 million investment.
The company expects to spend $206 million to add 384 rooms to the M Resort, effectively doubling it in size. In addition, the expansion will include added meeting space and updated amenities throughout the resort.
Penn will also continue to lean into its partnership with the Las Vegas Raiders, which has its headquarters and practice facility a few miles away. The M Resort has the Las Vegas Raiders Tavern & Grill, the only Raiders-themed restaurant.
“At the M Resort, the addition of a second tower will benefit from the strong demand in the Henderson local market while providing additional capacity for the group business that is drawn to our market-leading resort and amenities, including our highly successful partnership with the Las Vegas Raiders,” Penn Chief Executive Jay Snowden said in a news release.
Penn Uses Barstool Brand to Court Younger Gamblers
Penn recently acquired the rest of Barstool Sports, the somewhat controversial sports and lifestyle media company in which it owned a majority stake.
The company has used that brand's connection with younger customers to attract an audience for its sportsbook and other gambling properties.
The Barstool brand has grown sharply and developed a devoted following that does not have an allegiance to Caesars, MGM, or any other traditional casino operator.
"With its leading digital content, well-known brand and deep roots in sports betting, Barstool Sports is the ideal partner for Penn National and will enable us to attract a new, younger demographic, which will nicely complement our existing customer database," Snowden sad in January when the deal closed.
Barstool Sports has occasionally courted controversy, but Founder David Portnoy has leveraged his ability to get media attention to turn the brand into a powerhouse.
“This opportunity is a dream of mine and why I started Barstool Sports in the first place," said Portnoy, who is known as "El Presidente" to Barstool's fans.
"Barstool Sports has a deep sports and gaming history, and from the moment we met Jay and the Penn National team, we knew this could be an exciting and game-changing partnership and we can't wait to get started. I think with our shared vision and goals, we are uniquely positioned to be a leader in this business.”
