Liberty's Blog

Landrys Buys The Golden Nugget

There has been lots of local speculation that Tilman Fretitta has been banking on potential gambling in Galveston. Purchasing the Golden Nugget in Vegas is more proof to the speculation. While Texas must concider gathering more revenue, Landry's restraunts and Frettita are going to be in good positioning. The Flagship is our best guess for the first cassino. The question that remains is "When?"

Houston-based Landry’s, led by Galveston native Tilman Fertitta, said it purchased the downtown Las Vegas property from Poster Financial Group for $140 million in cash and assumption of $155 million in debt.With the news, Landry’s (NYSE:LNY) share price rose 12.5 percent.The news also is sure to resurrect rumors that Fertitta is eager to revive gambling in Galveston, where companies he controls have invested nearly $100 million and operate multiple restaurants and hotels.The Golden Nugget acquisition marks Landry’s first foray into the casino business, but expansion already is on Fertitta’s mind.“This transaction provides us with a well-recognized brand name that can be expanded into other markets,” Fertitta said. “The Las Vegas base provides an extremely strong foundation for our gaming division.”As Texas lawmakers look for new funding sources to bankroll the state’s public schools, an emotional debate about gambling has resurfaced on the island, where illegal gambling was big nearly 50 years ago. Last year, Fertitta was in the forefront of the debate when Texas lawmakers were floating a plan to allow 4,000 video slot machines at La Marque’s struggling dog track. Fertitta argued that putting machines at Gulf Greyhound Park would prop up that business but drain tourism from the island and Kemah, where Landry’s owns a 40-acre entertainment complex. If La Marque got slotmachines, the island should too, he argued.

posted by Liberty @ 1:34 PM