In Reno, approximately 450 miles north of the Las Vegas Strip, the Grand Sierra Resort is progressing on a transformative project that could significantly impact Nevada's gaming and tourism landscape. Under billionaire Alex Meruelo's leadership, the construction of a 10,000-seat arena has officially commenced, marking a high point in the resort's nearly 50-year history.
About three years since the project's initial announcement, work on the arena's foundations and infrastructure is well underway. With winter approaching, weather conditions could affect progress. This arena is a key element of a larger $1 billion expansion plan that, if fully realized, would symbolize the largest private investment ever in Reno.
"There’s a great deal of progress being made, a great deal of work happening… we have walls, we have foundations, all the underground work is basically done," stated Chris Abraham, GSR’s chief marketing officer, during a recent site tour. "Now it’s the fun time when we can actually start building up and everyone gets to see."
Initial cost estimates for the arena were roughly $350-$375 million, but Abraham now anticipates figures between $450-$500 million, reflecting Meruelo’s commitment to delivering an exceptional venue. This arena will not only serve as a site for University of Nevada men’s basketball games but also host various sports and entertainment events. "For a 10,000-seat-plus arena, it’s going to be the very best one of those, maybe in the world," Abraham asserted.
The GSR team is drawing design inspiration from global state-of-the-art arenas, including the Intuit Dome in California and the Moody Center at the University of Texas. Additionally, the Mohegan Sun Arena in Connecticut is being considered for operational insights due to its similar size and affiliation with a large casino.
While Reno has a limited history with professional hockey, the GSR arena aims to change that. The Reno Aces, a Triple-A affiliate of MLB's Arizona Diamondbacks, have performed well at Greater Nevada Field, yet other professional sports teams in the area have struggled due to venue issues.
Meruelo, who previously owned the NHL's Arizona Coyotes before their 2024 sale and rebranding, has plans for hockey at the new facility. Although the timeline for the arena's debut in 2028 is tentatively set, details surrounding potential relocations of the Coyotes' American Hockey League affiliate, the Tucson Roadrunners, remain uncertain. "We expect to have hockey as part of the future of the arena… but we’re probably another six months or so from really getting into the details of that," noted Abraham.
The relationship between the GSR and the University of Nevada has been crucial, with Meruelo fostering ties with school President Brian Sandoval, a former governor and chair of the Nevada Gaming Commission. With Nevada athletics historically attracting significant local interest, the new arena is expected to bolster recruitment efforts.
Athletic Director Stephanie Rempe emphasized the importance of investing in players and facilities in today's competitive NIL environment. "The venue is just another piece of that effort," she explained, stressing the necessity for Nevada sports to attract and maintain a winning culture.
This collaboration between a casino and a college sports team is rare, with few examples in the country. Rempe acknowledged the complexities involved in this dynamic, particularly concerning sports betting and its implications. While sports contracts on prediction markets are currently prohibited in Nevada, wagering on in-state colleges has been legal since 2001. This proximity to sports betting counters poses additional educational responsibilities for the university in ensuring student-athletes understand these dynamics.
The community's response has been enthusiastic, according to Abraham, who noted the resort's long-standing visitor base. Hosting Nevada athletics is aligned with GSR's ongoing operations, and the team is committed to creating an inclusive environment.
Meruelo's significant investment arrives at a propitious time for Reno, which reported $825 million in gross gaming revenue for the last fiscal year, reflecting a 7% increase from the previous year. Reno's growth has continued, with August 2023's revenue at $79 million, a 15% year-over-year increase. Record hotel room revenue and visitor numbers have further highlighted the city's resurgence.
Mike Larragueta, president and CEO of Visit Reno Tahoe, expressed pride in the city's progress, affirming the ongoing efforts to enhance the destination's draw. Abraham, recalling his early experiences in Reno, confirmed the kinetic energy of current developments. "It is definitely happening," he emphasized, pointing to the busy work site, "So we couldn't be more excited about that."
